Scan the QR code in the image to register On March 11, the State Administration for Market Regulation published penalty decisions against five community group buying platforms (Orange Heart优选, Duoduo Maicai, Meituan优选, Shihuituan, and Shixianghui)!
-01- Orange Heart优选 (Beijing) Technology Development Co., Ltd.: Orange Heart优选
According to an investigation by the State Administration for Market Regulation, since October 2020, the party concerned has engaged in the following behaviors when selling goods through "Orange Heart优选" in Chongqing:
I. Selling goods below cost with the purpose of excluding competitors
The party used subsidies in the form of flash sales, activity coupons, etc., to sell goods at prices below cost. Specific examples are as follows:
- On December 16, 2020, the party sold "10,000-person group Shaanxi red fragrant pear 300g/portion", marked as "group purchase price ¥0.88, subsidy ¥3.62, original price ¥4.50". Upon investigation, the purchase cost of this product was 2.4 yuan per portion.
- On December 16, 2020, the party sold "chestnuts 300g/portion" at a flash sale price of 0.99 yuan. Upon investigation, the purchase cost of this product was 2.5 yuan per portion.
According to the financial data provided by the party, from October 1 to December 15, 2020, the party accumulated subsidies of **10,000 yuan, resulting in a large number of products actually sold at prices below the purchase cost. If operating and other costs are included, the party's actual sales revenue was far below cost.
II. Using false or misleading pricing methods to induce consumers or other operators to trade with them
- On December 16, 2020, the party sold "Shandong garlic 250g", marked as "¥0.89, subsidy ¥2.69, original price ¥3.58". Upon investigation, the actual original price of this product was 0.99 yuan.
- On December 16, 2020, the party sold "milk cabbage 300g", marked as "flash sale price ¥0.99, ¥6.50". Upon investigation, the party used the strikethrough price as the basis for the promotional activity without indicating or explaining the meaning of the strikethrough price.
The facts of the above examples are evidenced by screenshots of product price pages, agreements, subsidy details, relevant financial data, transaction records, inquiry transcripts, etc. The State Administration for Market Regulation made the following decisions according to relevant regulations:
- Order to make corrections;
- According to relevant laws and regulations, a total fine of 1.5 million yuan.
Observer's note: In this announcement, Orange Heart优选 had the largest promotional discounts, with the highest subsidy rate reaching 63%.
-02- Shanghai Yucan Information Technology Co., Ltd.: Duoduo Maicai
According to an investigation by the State Administration for Market Regulation, since September 2020, the party concerned has engaged in the following behaviors when selling goods through "Duoduo Maicai" in Wuhan:
I. Selling goods below cost with the purpose of excluding competitors
The party used subsidies in the form of discounts, activity coupons, etc., to sell goods at prices below cost. Specific examples are as follows:
On December 15, 2020, the party sold yellow heart potatoes with a purchase cost of 2 yuan per portion, and the actual selling price after subsidy was 1.29 yuan per portion. On December 15, 2020, the party sold local eggs with a purchase cost of 15.9 yuan per portion, and the actual selling price after subsidy was 12.86 yuan per portion.
According to the financial data provided by the party, from September to December 2020, the party caused a large number of products to be actually sold at prices below the purchase cost through subsidies. If operating and other costs are included, the party's actual sales revenue was far below cost.
II. Using false or misleading pricing methods to induce consumers or other operators to trade with them
On December 16, 2020, the party sold "farmhouse mixed grain eggs 30 pieces/box", carried out a promotional activity, marked the price at 17.9 yuan, strikethrough price at 55.48 yuan, and the page claimed "reduced by 37.5 yuan". Upon investigation, the actual original price of this product was 12.86 yuan. On December 16, 2020, the party sold "Hubei specialty fresh rootless tender quinoa 250g", carried out a promotional activity, marked the price at 5.39 yuan, strikethrough price at 18.9 yuan, and the page claimed "2.8% discount". Upon investigation, the party used the strikethrough price as the basis for the promotional activity without indicating or explaining the meaning of the strikethrough price. On December 16, 2020, the party sold "Lidian extra virgin olive oil 5 liters/jug", marked at 44.5 yuan, and the page claimed "subsidy of 33.6 yuan". Upon investigation, the actual original price of this product was 44.5 yuan.
The facts of the above examples are evidenced by screenshots of product price pages, agreements, subsidy details, relevant financial data, transaction records, inquiry transcripts, etc. The State Administration for Market Regulation made the following decisions according to relevant regulations:
- Order to make corrections;
- According to relevant laws and regulations, a total fine of 1.5 million yuan.
Observer's note: The strikethrough price of 55.48 yuan for 30 eggs, although everyone knows it is just to make customers feel the discount is large, such an exaggerated price is truly astonishing.
-03- Shenzhen Meituan优选 Technology Co., Ltd.: Meituan优选
According to an investigation by the State Administration for Market Regulation, since September 2020, the party concerned has engaged in the following behaviors when selling goods through "Meituan优选" in Wuhan:
I. Selling goods below cost with the purpose of excluding competitors
The party used subsidies in the form of direct price reductions, activity coupons, etc., to sell goods at prices below cost. Specific examples are as follows:
On December 4, 2020, the party sold Shouguang cucumber (450g±50g /portion) with a purchase cost of 2.15 yuan, and the actual selling price after subsidy was 1.99 yuan. On January 7, 2021, the party sold Jianong Luochuan Fuji apples (4.2 jin±50g) with a purchase cost of 21.9 yuan, and the actual selling price after subsidy was 20 yuan.
According to the financial data provided by the party, from October 2020 to January 2021, the party caused a large number of products to be actually sold at prices below the purchase cost through subsidies. If operating and other costs are included, the party's actual sales revenue was far below cost.
II. Using false or misleading pricing methods to induce consumers or other operators to trade with them
On February 19, 2021, the party sold "Zaoyuanqiao antibiotic-free eggs 90 pieces/box", and the page marked "direct reduction of 40.1 yuan, limited to 2 pieces, ¥49.9 ¥90". Upon investigation, this product was a new product on that day and had not been reduced in price. On February 19, 2021, the party sold "Shandong Qixia Red Fuji 400g", and the page marked "4.3% discount, ¥2.59 ¥5.98". Upon investigation, this product was a new product on that day and had no discount.
The facts of the above examples are evidenced by screenshots of product price pages, agreements, subsidy details, relevant financial data, transaction records, inquiry transcripts, etc. The State Administration for Market Regulation made the following decisions according to relevant regulations:
- Order to make corrections;
- According to relevant laws and regulations, a total fine of 1.5 million yuan.
Observer's note: In the announcement, compared with the subsidy intensity of several companies, Meituan优选 seems to have not suppressed prices too severely.
-04- Beijing Shihui Technology Co., Ltd.: Shihuituan
The State Administration for Market Regulation pointed out that after investigation, since October 2020, the party concerned has engaged in the following behaviors when selling goods through "Shihuituan" in Guangzhou:
I. Selling goods below cost with the purpose of excluding competitors
The party used subsidies in the form of flash sales, coupons, etc., to sell goods at prices below cost. Specific examples are as follows:
In October 2020, the party sold Yunnan fragrant sticky small corn with a purchase cost of 3.2 yuan per piece, and the actual selling price after subsidy was 1.88 yuan per piece. In November 2020, the party sold original ecological green heart kiwi fruit 4 pieces per pack with a purchase cost of 3.4 yuan per pack, and the actual selling price after subsidy was 1.98 yuan per pack.
According to the financial data provided by the party, from October 2020 to January 2021, the party caused a large number of products to be actually sold at prices below the purchase cost through subsidies. If operating and other costs are included, the party's actual sales revenue was far below cost.
II. Using false or misleading pricing methods to induce consumers or other operators to trade with them
The party marked strikethrough prices on all products sold daily, except for new user exclusive (0.1 yuan). For example, on December 30, "hot product recommendation" Zhenxian special grade soy sauce 500g, marked price 8.99 yuan, strikethrough price 18.65 yuan; Thai longan 250g/portion, marked price 3.99 yuan, strikethrough price 7.23 yuan; eggs 48 pieces gift box, marked price 88 yuan, strikethrough price 105 yuan, etc. Upon investigation, the party used the strikethrough price as the basis for the promotional activity without indicating or explaining the meaning of the strikethrough price.
The facts of the above examples are evidenced by screenshots of product price pages, agreements, subsidy details, relevant financial data, transaction records, inquiry transcripts, etc. The State Administration for Market Regulation made the following decisions according to relevant regulations:
- Order to make corrections;
- According to relevant laws and regulations, a total fine of 1.5 million yuan.
Observer's note: Looking at these companies comprehensively, the strikethrough price is just a tool for merchants to show promotions, but some platforms have overdone it.
-05- Wuhan Qizhong Meiwei Technology Co., Ltd.: Shixianghui
The State Administration for Market Regulation pointed out that after investigation, since October 2020, the party concerned has engaged in the following behaviors when selling goods through "Shixianghui" in Wuhan:
On February 19, 2021, the party carried out a promotional activity for "[immediate reduction of 10 yuan, final price 29.9 yuan] Snowflake Tiancui beer", with the product page marked at 39.9 yuan, and the actual transaction price was 29.9 yuan. Upon investigation, the actual original price of this product was 29.9 yuan, and there was no price reduction. On February 19, 2021, the party carried out a promotional activity for "[immediate reduction of 5 yuan] Evergrande Spring low sodium mineral water", with the product page marked at 44.9 yuan, actual transaction price 39.9 yuan, and strikethrough price 65 yuan. Upon investigation, this product was newly launched and had not been sold before. On February 19, 2021, the party carried out a promotional activity for "[direct reduction of 2 yuan] Baifeilu buffalo high calcium milk", with the product page marked at 29.9 yuan, transaction price 27.9 yuan, and strikethrough price 39 yuan. Upon investigation, the actual original price of this product was 27.9 yuan, and there was no price reduction of 2 yuan.
When selling goods, the party extensively used strikethrough price comparisons for price promotions, but there was no price explanation on the product sales pages.
The facts of the above examples are evidenced by screenshots of product price pages, agreements, subsidy details, relevant financial data, transaction records, inquiry transcripts, etc. The State Administration for Market Regulation made the following decisions according to relevant regulations:
- Order to make corrections;
- According to relevant laws and regulations, a total fine of 500,000 yuan.
Observer's note: Merchants' promotional tactics come one after another, and consumers are hard to guard against.
Source: Retail and E-commerce Observation (ID: sqtggc)