Fast food giant McDonald's outlets in this southern China city
could be fined between 10,000 and 100,000 yuan (US$1,205-12,048)
for selling toys for which it is not registered.
As
a sales promotion during April and May 2001, McDonald's 34 chain
stores in Guangzhou, capital of Guangdong Province, offered a toy
of the cartoon character Snoopy for 10 yuan (US$1.20) with each
McDonald's meal.
Ye
Lilin, deputy principal of a local high school and a deputy of the
municipal people's congress of Guangzhou, proposed in late May the
practice be stopped, saying this was an unfair sales promotion
activity.
The city's administration for industry and commerce said in its
response to Ye's proposal that many customers had complained about
the sales promotion. Its investigation shows that the McDonald's
restaurants sold 233,140 Snoopy toys in April and May.
McDonald's is licensed to sell food, beverages and package
materials, but not toys.
The administration believes that McDonald's allegedly violated
Chinese laws by selling things other than food and beverages.
The results of the investigation have been submitted to the
provincial administration for industry and commerce. Guangzhou
authorities are waiting for an official reply from the
province.
According to the Chinese law on company registration, any company
which is involved in business for which it is not registered will
be fined from 10,000 to 100,000 yuan.
(
January 3, 2002)