China to probe once again auto industry for alleged violations image

After last year probing numerous automakers for price hikes across their spare parts businesses, China is again investigating alleged violations in the auto industry.

The accusations include the infringement of consumer rights and dissemination of false or misleading publicity, while the world’s largest auto market sees demand slowing amid economical woes and the stock market rout. The State Administration for Industry and Commerce is now in an investigation that researches consumer complaints and media reports, according to a statement on its website. The probe was initiated last month and will not be over until the end of the year. It is also set to investigate and wrongdoings in the trademark registration segment and bribery across commercial transactions. Back in 2014 the government set up a new consumer protection law, which increased the fines for fraud and false advertising, while also setting up return policies for online purchases.

The investigation could also be tied to a March program by the state-run broadcaster where it was reported that Tata Motors’ Jaguar Land Rover brands were at fault with an alleged fault handling. The automaker issued a public apology at the time and said it was already working to find a resolve to the issue. The CCTV program, aired on the same day each year to mark World Consumer Rights Day, has in recent years featured numerous other companies that were slow to respond to consumer complaints. The auto industry has seen its fat profits dropping this year amid an unexpected demand slowdown that has turned June auto sales negative for the first time in more than two years.

Via Bloomberg