It has been less than one month since the Administrative Measures on Retailer's Promotion Activities were put into force in China, and already Japanese retailer Ito Yokado has been accused of cheating customers in a sales promotion.
The Fengtai District Court released a statement that Ito Yokado has been sued for price swindling in its promotion, which is the first suit of its kind since the new Measures were implemented.
A Beijing resident surnamed Zhang says he saw an advertisement offering a cash rebate if he purchased a certain amount of goods. He then bought a down garment at Ito Yokado which was worth RMB618. However, Ito Yokado reduced the cost by offering a 9.5% discount, which made him suffer a loss of RMB49. He then sued Yokado Beijing and is asking for a double compensation for his supposed loss.
A representative from Ito Yokado says that it is impossible to showcase every detail of promotional information on the promotion poster, and the Bureau of Industry and Commerce in Fengtai District has already identified that there had been no price swindling in Ito Yokado's promotion.
According to the Measures, retailers should clearly show the content of promotional activities, such as the reason for promotion, regulations of the promotion, and time limits. Offenders may be fined up to RMB30000.
