Beijing Chaoyang District Court has ordered two Beijing companies to pay fines for misleading consumers.
Beijing Shenning Trade Company and Beijing Sheng'an Baicao Biology Company will pay RMB60000 and RMB40000, respectively, to Tianjin Shenning Company. Tianjin Shenning had accused the two defendants of using unfair competitive practices, and asked them to make apology and pay it RMB400,000 in compensation.
Tianjin Shenning said in its court petition that Beijing Shenning previously was one of its agents, but from 2005 to 2006, the company issued a series of announcements, saying that Tianjin Shenning's product quality had been declining and it was the company's emphasis on cutting costs that led to deterioration in quality. Tianjin Shenning said Beijing Sheng'an used articles about Tianjin Shenning's products to propagandize their own products.
In issuing the verdict, local media reports that the court said Tianjin Shenning's reputation had been hurt, and Beijing Sheng'an misguided consumers by using the articles about the accuser's product in promoting their products.
