(Yicai Global) June 13 -- Shanghai regulators ordered Chinese search giant Baidu to crack down on misleading commercial adverts on its platform.

The Shanghai Cyberspace Administration and the city's Market Regulation Bureau yesterday took to task Baidu's local branch for clickable ads that make exaggerated claims and have misleading content.

The regulators cited three questionable practices: use of headlines with exaggerated claims; use of seductive photos and lewd wording; and offers of unusually low prices for products offered for sale. For instance, a 55-inch liquid crystal display television was priced at only CNY99 (USD14.30).

The internet watchdog said it condemns Beijing-based Baidu's practice of using lewd streaming ads on some sites to boost online traffic without regard to public order and responsible conduct, as well as internet regulations.

Baidu takes advantage of its market monopoly by frequently blurring the content of online ads despite their importance to users. This practice often misleads users into believing what they see in false adverts posted by unscrupulous merchants. As a result, members of the public have often criticized the company.

Baidu's shares [NASDAQ:BIDU] fell almost 2 percent yesterday to close at USD113.09 each, while the benchmark Nasdaq Composite Index lost 0.4 percent.