Xiaomi accused of false advertising, fining ensues
posted by Peter K. / Aug 06, 2014, 7:30 AM
The fast-growing Xiaomi is making a lot of headlines lately, most of which are fairly positive and cover the manufacturer's rapid expansion on the smartphone market. However, the latest piece of news regarding Xiaomi is not on the positive side – the fifth largest smartphone producer in the world has been accused of false and misleading advertising. It seems that the company has lied exactly how many devices it sold during some its flash sales. As you might remember, the company usually claims that it successfully retails a vast amount of its smartphones in just a few seconds.
It appears that Xiaomi might have been spreading false information and lying about the sold phone after it procured three of its flash sales in Taiwan in the end of 2013. According to Taiwan's FTC (Fair Trade Commission, Xiaomi sold 1,750 devices less than it claimed afterwards, thus greatly misinforming its current and potential customers.
The company has already apologized for its unfair actions on Weibo (you can see its "Sorry!" poster on the right), but this did not stop the Taiwanese FTC from fining the “Apple of China” roughly $20,000 (NT$600,000). Although the relatively small fine is pretty gulpable, the disclosure of Xiaomi's practices will surely leave a bad scar on the company's public and market image. The recent allegations that it might be spying on its users will probably add up to the picture.
Could this hurt Xiaomi's future sales? Only time will tell. Share your thoughts in the comments section below!
source: The Next Web via Yahoo!
Posts: 41; Member since: Jan 06, 2014
i find it amusing that many falls in these kind of marketing gimmicks. here in philippines this company releases "limited stocks" like say a thousand handsets on sale so those buyers will rush to buy it first. then they'll brag that it get out of stock in a matter of minutes. then after a few days you can find it sold online by different stores. my point is they're just creating a hype with saying limited stocks.
posted on Aug 06, 2014, 7:45 AM 1
Posts: 188; Member since: May 21, 2013
"According to Taiwan's FTC (Fair Trade Commission, Xiaomi sold 1,750 devices less than it said afterwards, thus greatly misinforming its current and potential customers." Actually its funny on the part of Taiwan FTC. Those 1,750 devices are sold as part of priority F-code sales. I don't think thats a big deal because even those 600 odd devices per sale would have been sold in another minute or two if they were put up sale in regular method rather than priority code. In India also flipkart (online retailer in India which is selling Xiaomi exclusively) sold 1000 devices to their priority customers a day earlier than flash sale.
posted on Aug 06, 2014, 7:48 AM 1
Posts: 874; Member since: Oct 17, 2011
Well it seems that Xiaomi is not only copying apple, it is also copying samsung! :-)
posted on Aug 06, 2014, 7:59 AM 5
Posts: 11; Member since: Aug 06, 2014
Actually. It states the mistake is only 30 units. They sold 30 units less than what they claimed to have sold. I'm guessing this editor can't read chinese.
posted on Aug 06, 2014, 8:42 AM 1
Posts: 6794; Member since: Mar 29, 2012
Exacting. I know part of the reason is XiaoMi require Paypal account for payment no other mode is accepted. Therefore some of my colleague has no mean to pay even after clicking buy. XiaoMi will hold the order for 12 hours waiting for paypal payment before order auto deletion. We are also aware that Acer, HTC, Asus and other taiwanese oem are behind the complain. For me, i can think for myself, price right good spec equal deal done! Millions are still waiting for their XiaoMi. I still need to order a few more for friends.
posted on Aug 06, 2014, 10:12 AM 1
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