Due Diligence
Shanghai regulator fines IKEA 210,000 yuan for selling substandard bedding products
Global Times - 10 Nov, 2021
IKEA China was fined more than 210,000 yuan ($32,845) for selling substandard bedding products by the market regulator in Shanghai, China Central Television (CCTV) reported, citing a statement published on the regulator's website.
The Swedish furniture giant was penalized over poor colorfastness of bedding products, with all of the 1,456 products had been sold out, according to the announcement.
IKEA China imported the substandard quilt covers and pillowslips in January 2020, and the products went on sale in March 2020. In March 2021, the company removed the products from its shelves while halting imports of the commodities.
Illegal gains that IKEA obtained from selling the substandard products totaled 6,158.82 yuan which was confiscated by the Pudong New Area Administration for Market Regulation of Shanghai.
It was not the first penalty handed out to IKEA China. According to the National Enterprise Credit Information Publicity System, IKEA has been fined four times by Chinese market regulators from October 2017 to August 2021, with total fines mounting to 650,000 yuan in total, the CCTV reported.
IKEA China was fined more than 210,000 yuan ($32,845) for selling substandard bedding products by the market regulator in Shanghai, China Central Television (CCTV) reported, citing a statement published on the regulator's website.
The Swedish furniture giant was penalized over poor colorfastness of bedding products, with all of the 1,456 products had been sold out, according to the announcement.
IKEA China imported the substandard quilt covers and pillowslips in January 2020, and the products went on sale in March 2020. In March 2021, the company removed the products from its shelves while halting imports of the commodities.
Illegal gains that IKEA obtained from selling the substandard products totaled 6,158.82 yuan which was confiscated by the Pudong New Area Administration for Market Regulation of Shanghai.
It was not the first penalty handed out to IKEA China. According to the National Enterprise Credit Information Publicity System, IKEA has been fined four times by Chinese market regulators from October 2017 to August 2021, with total fines mounting to 650,000 yuan in total, the CCTV reported.