Xiaomi Under Investigation For Allegedly Misleading Potential Buyers
New reports have suggested, that Chinese smartphone manufacturer, Xiaomi Corp is under investigation for allegedly violating China’s new advertisement law. This new law, that became effective from the 1st of September, 2015, states that the use of superlative adjectives in promoting products would be banned.
Investigation of the matter is being made on suspicion of the usage of phrases such as “the best” to describe their product. Zhu Dalin, an analyst at the Beijing based Internet Consultancy Analyses told the Economic Times :
“The new law will have a certain impact on Internet companies, but not too much-after all, consumers are so accustomed to cliches such as ‘the super phone’ and ‘the omnipotent TV’ that these phrases make no real sense to them now.”
Allegedly, Xiaomi has also been in a similar situation earlier, when it had launched the Red Mi Note 2, where it showed the device to be equipped with panels from Japanese electronics giant Sharp Corp and the Taiwan manufacturer AU Optronics Corp. Soon, after buying the product, consumers found that the screens were actually produced from a Microelectronics Co Ltd based in Guangdong province.
This kind of an allegation is probably going to cost the manufacturer its reputation. However, no official reports have been made by the company so far.