Business Intelligence on Retailing, Franchising, and Consumerism in China

Shin Kong Place Compensates Consumer For Wrong Label

Beijing's Chaoyang District Court has asked Shi Kong Place, an up-market shopping mall in Beijing, to compensate a consumer for selling an incorrectly labeled product.

The consumer surnamed Yan bought a T-shirt branded with Jil Sander from Shin Kong Place on August 22, 2007. The Chinese logo on the T-Shirt said the clothes was made in Italy, but through Yan's investigation, found it was actually made in Turkey. Yan's investigation further identified that the T-shirt exported to China with a wrong manufacturing place marked on the invoice, and the dealer on the Chinese side then made the Chinese logo without correcting the wrong manufacturing place on the invoice and marked it as Italy.

Though Shin Kong Place apologized to Yan for the wrong branding, which it said occurred without their awareness, the court believed that the shopping mall should take some responsibility for the sale of the goods. As a result, Shin Kong Place has been asked to return Yan his RMB711 for the goods payment and compensate him the same amount of money for this error.

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