Xioami is Being Probed for Misleading Consumers in China
Jonathan BenitoChinese smartphone vendor, Xiomi, faces investigation for allegedly violating China's new law regarding use of superlatives in advertising. The company, on its website, describe its products as "the best", "the most advanced", making it the first internet enterprise to experience the backlash of the new regulation.
It seems nothing more than an unhealthy competition as the regulators were not-so unanimously tipped by rival phone maker, Cong. Cong's cited its concern over the fact that consumers might be mislead into thinking that Xioami phones really are all that. Although Cong is also very popular in China, it doesn't help that its current CEO, according to a report from Tech in Asia, used to work for a company charged with making false statements against Xiaomi.
To say that advertising laws are different in every country is nothing short of painfully obvious. Some countries, specifically in Southeast Asia, still consider showing a competitor's brand in commercials highly unethical and illegal. Superlative words are never in short supply in North America, and its presentations and keynotes alone are full of words that would have regulator's heads shaking in disbelief elsewhere.
Xiaomi, of course, is no stranger to legal battles and controversy. The company's uncanny ability to pump out affordable and considerably competitive specs have made them the brand of choice for the not-so-brand-conscious. In an interview with Wallstreet, Xiaomi Chief Executive Lei Jun, turns its focus to international dominance. Lei plans to make Xiaomi one of the leading, if not the top brand in three big markets that include India, Brazil and Indonesia.
Xiaomi has huge plans on services built for the smartphone. More than just your usual stop for music, videos, news and financial services, it also has plans for targeted sales that rely on information sent by the device. Xiaomi has not started on a full-scale ad sales yet, but Lei is optimistic that advertisers would naturally flock to them.
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