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(Yicai) March 17 -- Chinese companies have vowed to take immediate steps to correct consumer rights violations exposed by China’s state broadcaster in an annual show that publicly names and shames brands involved in unethical and sometimes illegal business practices.
China Central Television airs the ‘315’ consumer watchdog event each year on March 15, which is World Consumer Rights Day. Over the years, the show has gained a reputation for triggering widespread public outrage and prompting regulatory crackdowns. This year’s broadcast highlighted issues such as the recycling of disposable underwear and deceptive home appliance repair services.
Free Point, a sanitary napkin brand owned by Baiya Sanitary Products, said it would combat illegal recycling, reconditioning, and counterfeit sales after the show reported on safety concerns with disposable underwear. The brand will set up an investigative team and vows to file police reports, it added.
Chongqing-based Baiya Sanitary [SHE: 003006] closed down 9.4 percent at CNY23.14 (USD3.20) a share on the Shenzhen Stock Exchange today.
Regulators have begun investigating issues with disposable underwear related to Baiya Sanitary, medical disposables maker Winner Medical, and knitted underwear manufacturer Langsha Holding.
Langsha will actively cooperate with local market regulators, the Sichuan province-based company announced. Its stock [SHA: 600137] ended 1 percent lower at CNY15.84.
Purcotton, Winner Medical’s pure cotton tissues brand, said it has no connection with the firms implicated in the disposable underwear violations, adding that its products are certified and comply with national safety standards. Winner Medical’s stock [SHE: 300888] gave up 6.1 percent to finish at CNY43.90.
The program also exposed violations with substandard sanitary pads, baby diapers that should have been destroyed, unsterilized disposable underwear, excessive use of phosphate water-retaining agents in processed shrimp, platforms charging extra interest via electronic signatures, robocalls violating consumer privacy, phone lottery fraud, the sale of substandard electrical cables, and others.
China Dotman and Tongchuang Jiuding Investment Management Group faced scrutiny over their stakes in Woodpecker Network Technology and Renrenxing Technology, which are involved in e-signature lending practices.
Chongqing-based Woodpecker Network has established a special investigative team to address service standards and pricing transparency irregularities, it announced.
The State Administration for Market Regulation has started an immediate probe into the violations, while the Ministry of Industry and Information Technology is investigating AI robocall harassment and other issues.
Local governments are taking took swift too. The city of Jining has sealed implicated facilities and detained executives and Shangqiu has seized products and materials, while Guangxi Zhuang Autonomous Region has formed a task force to look into non-standard cable manufacturers.
Tianjin is probing exposed lending platforms, Chengdu's Jinjiang district is investigating lending platforms, Lianyungang is addressing the shrimp weight manipulation issue, and Zhanjiang is looking into water-retaining shrimp products, seizing materials, and recalling products.
Editor: Martin Kadiev