(Yicai Global) June 17 -- Chinese authorities are investigating Xi'an-based Mercedes-Benz dealer Xi'an Lizhixing Automobile Services after it required an owner to sign a confidentiality agreement before returning a new car with an oil leak, Beijing Youth Daily reported today.

A buyer surnamed Wang bought a car from the company at the end of February this year. After three months, the car leaked oil and the seller agreed to buy back the car instead of carrying out initial repairs after consultation. However, the consumer was required to sign an agreement not to disclose the event to third parties, subject to a penalty of CNY400,000 (USD58,000).

Editor: William Clegg