Guazi, the internet used car marketplace based out of China claiming to be the that nation's biggest used vehicle market, was recently given a $1.8 million fine for not supporting their claims and misleading customers.
The advertisement claim which has drawn the ire of regulators is as follows,“One year after its creation, the trading volume on our used-car platform has risen to the top.”The reason being that Guazi only facilitated the sales of 86,000 vehicles through its platform from August 2015 to July 2016 but it had rivals which sold up to 400,000 vehicles during the same period.
The company has disputed the decision by authorities and filed an appeal saying that it did not intend to draw attention through the use of fake ads; neither did it infringe consumer rights nor benefit through unfair competition. In addition, the company merely describes itself as a “sector leader” on its webpage.
Read more here
Join us in Bangkok the 19th to the 22nd of March for the Property Portal Watch Conference.