Xiaomi accused of false advertising, fining ensues

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!

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15 Comments

1. cireyaj15

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.

2. nokia12

Posts: 610; Member since: Nov 19, 2013

good morning PA .. you are only late by 5 days in posting this news

3. sri_tech

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.

14. HugoBarraCyanogenmod

Posts: 1412; Member since: Jul 06, 2014

Huge fans of Xiaomi here and i find this disappointing, no reason to cheat customer this way, Chinese Taipei may win innovation, but we mainlander win the price

4. Lt.Green

Posts: 397; Member since: Mar 13, 2014

Tsk tsk tsk..shame on you!

5. ryq24

Posts: 875; Member since: Oct 17, 2011

Well it seems that Xiaomi is not only copying apple, it is also copying samsung! :-)

6. itsdeepak4u2000

Posts: 3718; Member since: Nov 03, 2012

And that's why they are getting attention, selling good and became no.1 in China. :)

9. The-Sailor-Man

Posts: 1095; Member since: Mar 25, 2014

Actually this "sold , out of stock" is apple's patented trick.

7. alohha

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.

8. joey_sfb

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.

10. The-Sailor-Man

Posts: 1095; Member since: Mar 25, 2014

For bashing Samsung and fighting it , the tech media will not shy to promote even companies like Xiaomi every single day. Apple's tech media don't shy to use dirty tricks too.

11. GreekGeek

Posts: 1276; Member since: Mar 22, 2014

Lol Does it matter? Xiaomi makes excellent phones, that's all I care about

12. lumia920

Posts: 112; Member since: Nov 27, 2012

xiaomi attacked by rivals...

13. JMartin22

Posts: 2370; Member since: Apr 30, 2013

Lol, go figure, I assumed something was up. Then again, you can't really take the authenticity of poorly conceived Chinese products to heart.

15. eckersley

Posts: 4; Member since: Aug 13, 2014

hy. how do i order and get this phone[and other gadgets] sent to me in Africa? of course without falling for online fraudsters?

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