Shanghai guideline raises alert over complaints by phony fraud-fighters

Seven regulatory departments in Shanghai have jointly put forward a guideline to prevent purported fights against fraud that are themselves fraudulent.

The departments said anyone who tries to blackmail merchants by picking on minor faults in products, or even forging defective products with intent to file fraud complaints, will be put onto a blacklist or lose credit.

The departments include market watchdogs, such as the Shanghai industrial and commercial authority, the food and drug authority and law enforcement agencies, such as police bureaus.