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Walmart Faces Sanctions In China

CHONGQING, China, Oct. 10 (UPI) — Chinese authorities said they have temporarily closed 12 stores owned by U.S. retail giant Walmart for allegedly mislabeling pork as organic.

The issue involves 10 Walmart and two Trust Mart stores in Chongqing, a city in southwestern China that says on its Web site it has cited the company 21 times since it opened its first store in the city in 2006, The Wall Street Journal reported Monday.

The stores has been cited for false advertising, food safety and pricing errors. The latest sanctions include closing the stores for 15 days and possible fines of $575,000.

Walmart and French retailer Carrefour SA were fined $1.4 million earlier this year for fraudulent pricing.

Recently, the issue of rising food prices has been particularly sensitive. Top government officials have turned their attention to inflation, which has given rise to speculation that Regional Communist Party Secretary Bo Xilai is using the sanctions to help secure a coveted position in the national Politburo Standing Committee that will become available next year.

The price of pork was up 52 percent in China on an annual basis as of August. Organic pork, the Journal said, is more expensive than non-organic, which could give the store incentive to mislabeling the product.

UPI - United Press International, Inc.

Since 1907, United Press International (UPI) has been a leading provider of critical information to media outlets, businesses, governments and researchers worldwide.

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  • Christin

    Wonder if Walmart is doing that here… mislabeling food.

    Prices of food are up Everywhere.

  • s c

    I know it was an accident, UPI, but thanks for the laugh. Imagine that! A country that sells us CRAP doesn’t like the idea of America [via WalMart] selling China CRAP! I don’t much care if it’s posturing on the part of a Chinese politician or if WalMart is really trying to sell China “mis-labeled” pork. What a NEAT concept!
    I wonder if anyone ever told the Chinese that acording to USDA standards, organic supposedly means 95% “organic.” Someone recently mentioned on this website that this figure [95%] has been LOWERED.
    Maybe the Chinese should consider forcing WalMart to have union employees in China. In a way, I’m surprised that China didn’t make that idea stick when WalMart first moved into China. It just wouldn’t be “fair” for the Chinese people to have to endure an American store without having UNION employees to insure QUALITY products. Hardy frickin’ har. That’s rich!
    Unions are in bed with this screwed-up administration, but in China, WalMart has managed to avoid unions in a Communist country. Lenin must be spinning in his glass-topped coffin in Moscow! Many happy returns, V I Lenin! Who says crap doesn’t come around full circle if only you wait long enough? That makes my day, people!

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