Mercedes dealer fined 1m yuan for faulty parts

After investigating recent car sales disputes, market regulators in Xi'an, Shaanxi province, have fined a Mercedes-Benz dealer 1 million yuan ($145,000) for selling faulty products and misleading consumers.

The market supervision bureau of Xi'an's high-tech zone, where the dealer, Lizhixing Co, is located, said on Monday that the company had sold products that did not meet the standards of personal and property safety, as well as exaggerated and concealed information related to the protection of customers' interests.

"The company was fined 1 million yuan for the two illegal acts, and the money will be submitted to the State treasury," the bureau said.

An investigation was launched after a woman claimed the engine of her newly purchased Mercedes-Benz CLS300 was leaking oil. The dealer initially refused to give her a refund, but later agreed to pay compensation after a video of her protesting at the dealership went viral.

A mechanical inspection found that the engine's right side was damaged and leaking oil, though there was no history of work being done on it. "The engine defects came during assembly," the regulator said, adding that the problems infringed the woman's right to personal and property safety.

Lizhixing Co issued a statement on Monday, saying it accepted the decision from the regulatory authorities and will strictly enforce it.

It apologized for the incident and said the company has rectified the situation and conducted employee training to improve customer service.

According to Beijing Youth Daily, the customer has been accused by anonymous netizens of trying to cheat the company, with some calling her a liar.

She obtained a copy of the regulator's report, including the results of the mechanical inspection, on Monday morning and told the newspaper that "it finally proved that I am not a liar".

Investigators said Lizhixing Co also improperly induced customers to sign an agreement with a second company, Shaanxi Yuansheng Auto Trading Co, as part of the sales transaction, and charged a service fee from which it profited. This violated fair trade and the consumers' right to know, because the purpose of the fee, which the woman said was 15,000 yuan, was not clear.

The trading company is also suspected of infringing consumer rights. Other cases of suspected consumer abuse by Mercedes-Benz Automobile Sales Co, the parent company in China, have been transferred to other authorities.

A video showing the woman protesting while sitting on the hood of a new car at the dealership went viral online in April.

The Mercedes-Benz service branch in Beijing later issued an apology. The two sides negotiated a settlement that included a replacement car, a full refund of the so-called service fee, a visit to the Mercedes assembly line in Germany and free VIP services for the woman for 10 years.

zhangyangfei@chinadaily.com.cn

(China Daily Global 05/28/2019 page4)