of 'pricing errors'? The National Development and Reform Commission said Wednesday that it found misleading pricing at 11 Carrefour stores and three Wal-Mart stores. The commission also alleged such practices at a branch of a Chinese supermarket chain.
The agency's statement came amid heightened concern over pricing as China battles inflation. China's consumer-price index rose 4.6% last month, after reaching a two-year high of 5.1% in November.
The commission said the stores misled shoppers by claiming that the original prices on discounted items were higher than they actually were, making the discounts seem greater, or by charging customers more at the register than the prices on labels or in advertisements.
The commission's announcement didn't appear to pose any significant financial threat to the companies' China operations. The commission, China's main economic planning agency, ordered the confiscation of any income from the pricing practices, as well as fines of up to 500,000 yuan, or about $75,000.
The commission said the allegations represented a selection of "typical cases" found during an investigation and warned that all supermarkets in the country should avoid such practices.
It was unclear why the two foreign companies were highlighted. Representatives of the commission couldn't be reached.
Foreign companies have been singled out in regulatory crackdowns in China before, in part because they have less influence than Chinese companies do in the political system.
Carrefour and Wal-Mart are two of the biggest retail chains in China, though they have a small fraction of the country's retail outlets, many of which are small, independently owned operations. Carrefour operates more than 180 hypermarkets in China. Wal-Mart has more than 200 stores in China.
The commission said it will strengthen price monitoring during the Lunar New Year period, which starts next week. The weeks leading up to the holiday are a big spending period in China.
From WSJ
The agency's statement came amid heightened concern over pricing as China battles inflation. China's consumer-price index rose 4.6% last month, after reaching a two-year high of 5.1% in November.
The commission said the stores misled shoppers by claiming that the original prices on discounted items were higher than they actually were, making the discounts seem greater, or by charging customers more at the register than the prices on labels or in advertisements.
The commission's announcement didn't appear to pose any significant financial threat to the companies' China operations. The commission, China's main economic planning agency, ordered the confiscation of any income from the pricing practices, as well as fines of up to 500,000 yuan, or about $75,000.
The commission said the allegations represented a selection of "typical cases" found during an investigation and warned that all supermarkets in the country should avoid such practices.
It was unclear why the two foreign companies were highlighted. Representatives of the commission couldn't be reached.
Foreign companies have been singled out in regulatory crackdowns in China before, in part because they have less influence than Chinese companies do in the political system.
Carrefour and Wal-Mart are two of the biggest retail chains in China, though they have a small fraction of the country's retail outlets, many of which are small, independently owned operations. Carrefour operates more than 180 hypermarkets in China. Wal-Mart has more than 200 stores in China.
The commission said it will strengthen price monitoring during the Lunar New Year period, which starts next week. The weeks leading up to the holiday are a big spending period in China.
From WSJ