[Case Study 2]


A catering company put up a banner on its premise saying "One gift for one purchase at noon and one gift for two purchases in the evening", but did not indicate the name and quantity of the complimentary products. After the customer consumed a catty of beef, only a dish of mutton with lower value was given as a gift. Which form of price fraud should such act be classified as?
Reference answers:
It is a price fraud of blurred gift sale. According to Article 6(7) of the Rules on Prohibiting Price Fraud, it is a price fraud "if a gift is given when selling goods or providing services without truthfully indicating the name and quantity of the gift or that the gift is fake or inferior in quality. "According to Article 7 of the Rules on Administrative Penalties for Illegal Pricing Acts, where a business operator entices customers or other business operators into trading with them through false or misleading pricing, they shall be ordered to make corrections, their illegal gains shall be confiscated, and a fine of no more than 5 times the illegal gains shall be imposed, or a fine of not less than RMB 50,000 but not more than RMB 500,000 shall be imposed if there are no illegal gains, and they shall be ordered to suspend business for rectification or their business license shall be revoked by the industrial and commercial authority in case of any serious consequence arising therefrom.

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Robert Zhang

An international lawyer registered in Shanghai, China. Master's degreePublish…

Steve Li

An international lawyer registered in Shanghai, China. Master's degreePublish…

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