Business Intelligence on Retailing, Franchising, and Consumerism in China

Louis Vuitton Punished For Selling Unqualified Products

According to Zhejiang Administration for Industry and Commerce, Louis Vuitton Hangzhou specialty store was found selling unqualified products in a routine quality spot check.

The store has been ordered to stop selling these unqualified products and surrender illegal gains of about CNY290,000, and was fined CNY460,000.

On April 18, the officers of Zhejiang Administration for Industry and Commerce checked three bags in the LV Hangzhou store in a routine spot check. The quality inspection report showed that the three bags failed to meet the light industry standard of the People's Republic of China. According to the standard's requirement for the exterior of products, the three bags were unqualified because there were no samples.

The standard says that each bag must have a sample of the same material as the main material of the product. The sample is used to show the material of the product. If a bag does not have a sample, it can be judged to be unqualified.

On May 15, Zhejiang Administration for Industry and Commerce sent the inspection report to the LV Hangzhou store. However, the store did not stop selling the unqualified products. Therefore, on June 18, the administration formally issued an order to the store, ordering it to stop selling the unqualified goods and make corrections within 15 days. In addition, the illegal gains of CNY298,559 were confiscated and the store was fined of CNY462,500.

Christopher Zanardi-Landi, president of Louis Vuitton China, said that the company will obey the law of China fully and accept the orders. He also expressed his appreciation of the administration for pointing out the problem. He promised that the company will actively cooperate with law-enforcement departments and properly handle customer complaints.

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