[Asia Economy Reporter Park Byung-hee] Chinese authorities have fined Swedish furniture company IKEA 1.72 million yuan (approximately 310 million KRW) for false advertising, according to reports by Beijing Youth Daily and others on the 4th (local time).
The Shanghai Municipal Market Supervision Administration stated that IKEA violated China's advertising law by exaggerating claims about a specific curtain product.
The administration explained that IKEA promoted its 'GUNRID' curtains as having air purification functions through subway advertisements and other means, but the air purification effect was only observed under certain experimental conditions, concluding that the advertisement could mislead consumers.
In a statement posted on a smartphone application in the China region the previous day, IKEA said, "We are deeply aware of the possibility that the promotion of air purification functions may mislead consumers," and added, "We will actively cooperate with the relevant authorities' decision."
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