China to Carry Out Investigations for Examining Violation of Consumer Rights in the Automobile Industry

Published By : 11 Aug 2015 | Published By : QYRESEARCH

China will soon be investigating the trends in the China automobiles market. The investigation will mainly be focused on examining the consumer practices being followed in this industry. China wants to mainly look into any possible deviations in consumer rights that are taking place, any sort of misleading and false publicity, violations in registered trademarks, and also bribery in business and commercial transactions. 

The investigation began at the beginning of this month and is expected to continue till the end of this year. This investigation will look into media reports and consumer complaints. In 2014, China had launched a consumer protection law that pertained to increasing the penalty for false advertising and related frauds. The new legislation involved return policies with regard to online purchases. 

These steps were taken in order to look into the concerns of the middle class population of China that is expanding significantly. Their concerns relate to food, consumer goods, air quality, and even drug safety. Several car manufacturers such as Nissan, Mercedes Benz, and the Volkswagen Group ended up overselling spare parts and repairs to many drivers. Also, Jaguar Land Rover did not handle a certain alleged technical snag in a gearbox. Such incidents have increased the importance of conducting investigation on understanding any such problems that consumers may be facing in the China automobiles market. Consumers also witness the problem of their grievances going unaddressed. 

Till now, China has mainly been focusing on antitrust violations that were identified in its automobiles sector, wherein the international automaker was penalized because of price fixing. The concerned authorities fined Fiat Chrysler Automobiles’ Chrysler’s sales unit on the one hand and the one of Volkswagen’s car manufacturing businesses. The latter had engaged in price fixing in the sales unit of Audi. 
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