The 'Apple of China' has run into trouble for claiming its phones are 'the best'
REUTERS/Anindito Mukherjee
The Beijing Ministry of Industry and Commerce is investigating Xiaomi for using superlatives like "best" to describe its some of its smartphones.
China's new ad restrictions - which also tighten regulations on personal endorsements and count the use of "technical or digital methods" to fabricate or "improve" the real effect of the product or service as false advertising - went into effect on September 1.
Penalties for violations start at RMB 200,000 (£20,000), but can go much higher depending on the severity of the charges.
But according to a report from China's Securities Daily, it was the CEO of a rival smartphone company called Cong that alerted authorities to the alleged use of superlatives in Xiaomi's advertising. Cong CEO Tan Wensheng told Securities Daily that he was concerned Xiaomi customers would be misled by the use of terms like "first-class" and "the king of screens" on Xiaomi's site, and has mentioned it on his official Weibo account too.
But Xiaomi's meteoric rise - it was China's top smartphone firm in Q2 2015, knocking Apple off the top spot - has in part been thanks to its customers. Xiaomi has a pretty devoted fan base - so dedicated, in fact, that the company has been nicknamed the "Apple of China."
This isn't the first time that one of Wensheng's companies has brought allegations against Xiaomi, Tech in Asia writes. He used to own Red Pepper, another smartphone company that was fined RMB 150,000 (£15,000) for making harmful false statements about Xiaomi.
We've reached out to Xiaomi for comment on the allegations, and will update this story with any response.
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- Catan adds climate change to the latest edition of the world-famous board game
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- JNK India IPO allotment – How to check allotment, GMP, listing date and more
- Indian Army unveils selfie point at Hombotingla Pass ahead of 25th anniversary of Kargil Vijay Diwas