Blog: Carrefour under Chinese government scrutiny again
Michelle Russell | 11 December 2012
French retail giant Carrefour has found itself in hot water in China again after being accused of fraud.
The local government in China's northern Shanxi province is investigating a Carrefour store in Taiyuan that has been accused of cheating customers with mislabelled price tags.
According to the China Daily newspaper, the country's price administration bureau received a number of customer complains about the mislabelling of a food product, although it did not say how many.
A spokesperson for Carrefour told just-food the discrepancy was between the shelf price and the cash aligned price of one product: packs of chocolate cereal bar Cola Cao.
"It was an unintentional mistake," the spokesperson said. "It was an individual case and we immediately sent a team out to check and make sure the store strictly follows the prices to avoid any future mistakes."
She said the investigation is still ongoing. According to the China Daily, Carrefour could face a CNY500,000 (US$80,000) fine.
It seems, however, this is not the first time Carrefour has been investigated by Chinese officials.
In February last year, Carrefour was fined CNY9.5m (US$1.4m) by China's National Development and Reform Commission for manipulating product prices in some of their stores.
There has been a rise in the number of food companies in the UK filing for insolvency - and the intensification of competition between the country's grocers has been blamed....
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