(Yicai Global) April 13 -- China’s 360 Security Technology, which runs the search engine 360 Search, has been fined CNY2 million (USD305,400) by regulators for running fraudulent medical advertisements, a scam that first came to light last month on state broadcaster CCTV’s annual ‘name-and-shame’ show, the Beijing News reported today.

Online adverts for fake merchants and products appear in search results on popular platforms including that of 360, CCTV said in its program broadcast on World Consumer Rights day. The accusations were quickly followed up by inspectors from the Beijing Municipal Administration for Market Regulation.

The regulator’s probe found that 360 Security's unit Beijing Haosou Dianjing Technology is responsible for approving all ads before they are posted. The subsidiary failed to perform its duties, resulting in the publishing of false and illegal ads, the report said.

Fake adverts in search results became the focus of public concern in 2016 following the case of a cancer patient called Wei Zexi. Wei was diagnosed with a tumor but chose the wrong therapies after being directed toward them by search results on leading search engine Baidu. Wei later died at the age of 22. Beijing-based 360 Security said at the time that it would stop promoting medical products.

Shares in 360 Security [SHA:601360] dipped 0.29 percent to close at CNY13.57 (USD2.07) today.

Editor: Kim Taylor