Korean chain supermarket Lotte Mart recently was fined 500,000 yuan for “fake promotion.” Eight were found price fraud during its recent promotion after investigation.
According to the price investigation held by Beijing Municipal Commission of Development and Reform, Lotte market near Jiuxianqiao, Chaoyang, had faked prices during promotion. The original prices were faked by being raised up. The discounted prices for some products were the original prices.
During the promotion period between January 20 and February 2, the discounted price of the 5 kilograms’ Fulinmen rice was 29.9 yuan and the label showed that the original price was 52.9 yuan. However, the original price of the rice was 29.9 before the promotion. The discounted price of a bottle of 500 ml Wuliangye Five Star wine was 139 yuan, the fraud original price was 598 yuan. Another kind of Wuliangye wine was sold for 59 yuan and the faked price was 498 yuan.
Apart from the price, Lotte market also had vague promotion period. 1000g Tianfuhao roast duck was sold for 68 yuan for promotion. The investigation showed that since December 6 in 2016, the price of the product has been the same, even cheaper in November, 2016.
The fine showed that Lotte market was once warned and punished by the Beijing Municipal Commission of Development and Reform because of advertisement problems at the beginning of this month. This time Lotte market is facing with serious punishment of 500,000 yuan.
According to Korean media, by March 8 this year, 55 of 99 Lotte markets in China announced closed, which reduced half of Lotte Group’s Chinese market. Lotte’s sales in China were also affected due to the news of Lotte supporting Terminal High Altitude Area Defense, known as THAAD. (萨德)