Luckin Coffee fined for unfair competition

The State Administration for Market Regulation, the top market regulator, fined five companies, including Luckin Coffee China Co Ltd, two million yuan ($298,000) each for unfair competition.

The administration issued an administrative penalty decision on Oct 12 stating Luckin Coffee China and Luckin Coffee Beijing, between April and Dec of last year, collaborated with multiple third-party companies to fabricate 123 million false coffee orders.

Luckin Coffee has hired individuals and enterprises to make orders, adding false incomes and forging banking transactions records, which has deceived and misled consumers, according to the administration.

The administration has ordered the coffee chain to cease its illegal activities.