Used-car trading platform Guazi has been fined 12.5 million yuan ($1.8 million) for misleading consumers.
The Beijing commerce bureau found that the site, which connects individual buyers and sellers, had overstated its business when it advertised the following claim:
“One year after its creation, the trading volume on our used-car platform has risen to the top.”
The problem? Guazi — which went online in 2015 — only sold 86,000 vehicles during the one-year period from August 2015 to July 2016. Its two rivals sold 400,000 and 90,000 units in the same period, the bureau said.
Guazi said in a statement on Friday that it disputed the bureau’s ruling and has filed for a review of the matter.