Alibaba fined for misleading "discounts"

Alibaba fined for misleading "discounts"

The Chinese government has fined Alibaba 800,000 yuan (120,000 euro) because several sellers have used misleading prices on its platforms for the two previous Singles' Days.

Discounts for higher prices

Several sellers had first increased their prices during those days, in order to be able to give discounts based on those higher prices and take full advantage of the bigger online sales during Singles' Day. That particular day, on 11 November, is China's largest online sales day and is a reason for online shops to hand out plenty of discounts. Every year, it is Alibaba's absolute heyday.

 

Sellers on Alibaba can decide their own pricing, but the Chinese government has decided Alibaba should have regulated things more. The company has already indicated it will point out to its sellers that they have to abide by the rules regarding pricing.

Tags: