14 DAY TRIAL // Chinese smartphone producer Xiaomi might be one of the most popular device makers in the country, but its fame might have been achieved through unlawful marketing strategies. Or at least that’s what industry regulators in China seem to believe.
According to a report coming out China Daily, an investigation has been initiated to assert whether Xiaomi is violating China’s new advertising law that bans the use of superlative adjectives when promoting products.
Xiaomi has apparently been caught red-handed using words like “the best” when describing some of its products online, and industry regulators will have none of that.
This is the first investigation that has been launched by the Beijing Administration for Industry and Commerce, after the said law became effective starting September 1.
The new legislation was instituted in order to shield customers from advertisements that often over-exaggerate the capabilities of the products that are being marketed.
Xiaomi might have to water down its marketing campaigns
Furthermore, it should also prevent device manufacturers from making false statements about their products. The report gives as an example that dates back to 2014, when Xiaomi launched the Redmi Note 2 which was promoted on e-commerce website as taking advantage of panels from Japanese electronics maker Sharp and fro Taiwanese AU Optronics Corp.
However, customers later found out that the displays were actually produced by Tianma Microelectronics Co. Ltd, which is located in the Chinese Guangdong province.
Xiaomi tried to excuse itself from the situation, by pointing out that the information has only been published on select e-commerce platforms and cataloged it as obvious employee mistake. But Xiaomi’s image had already taken a blow.
Officials at Xiaomi or the Beijing Administration for Industry and Commerce weren’t available to comment on the probe being issued. If regulators’ suspicions turn out to be true, Xiaomi will probably be fined and asked to put a stop on all hyperbolic marketing campaigns.
Speaking of which, Xiaomi is gearing up to release its next-gen flagship, the Mi5. According to a recent report, the smartphone will make it out as soon as December, when it will probably be announced with a Snapdragon 820 on board.