Chinese officials open investigation into Xiaomi’s use of the word “best” in ads

A new report out of China says the Ministry of Industry and Commerce has opened an investigation into whether Xiaomi illegally used the term “best” in advertising on its web site in violation of a new advertising law. The new law went into effect on September 1st and includes prohibitions on all sorts of advertising activity, including the use of superlatives like the word “best” in advertisements. Companies that are found to be in violation may face penalties starting at $31,000 USD.

According to sources, Chinese officials were tipped off to Xiaomi’s potential misdeed by Tan Wensheng, CEO  of Cong, a producer of smartphones and competitor to Xiaomi. Tan claims he is concerned with Xiaomi’s use of words like “first-class,” “the king of screens,” and others that may mislead consumers. However, many in China think Tan is just upset that his previous business venture, a smartphone manufacturer called Red Pepper, was unable to compete against Xiaomi and Cong does not appear to be faring any better. Red Pepper was fined $23,500 USD for making false statements about Xiaomi, so many think Tan is just using the new Chinese law to exact some revenge.

source: Tech in Asia

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