The Taiwan Fair Trade Commission issued a handsome fine of 600,000 NTD to the popular Chinese cellphone brand Xiaomi Technology Co. for providing false sales reports about online purchases of its budget smartphone, the Xiaomi Hongmi, according to Net Ease News.
The commission revealed that Xiaomi Taiwan initiated three waves of online sales events for its Hongmi phone on December 9, 16 and 23 with quotas of 10,000, 10,000 and 8,000, respectively. On each occasion, the company claimed their phones were being sold out of stock in a matter of minutes.
Further investigation found that their sales volume were actually 9,339, 9,492 and 7,389 phones, respectively. More customers should’ve been able to purchase the product at the events, yet it was closed by Xiaomi, which wasn’t consistent with its mobile advertisements.
Xiaomi reportedly sold its entire 100,000 stock of budget Xiaomi Hongmi phones in 90 seconds flat following its release last August, upping its sales target for the year from 15 million to 20 million smartphones.
Former Google VP Hugo Barra joined the Chinese phone maker at the end of August last year.
[Image via Google Plus]
By Christy Lau