Walmart Stores In China Ordered Shutdown for Alleged Mislabelling
U.S. retailer Walmart has sent a team from its China headquarters to Chongqing in Southwest China to work closely with store and the officials of the Chongqing Administration of Industry and Commerce (AIC) after being investigated for alleged mislabeling of its pork products.
"We have fully cooperated with the investigation and focused upon the fastest implementation of corrections suggested by the local AIC. Some Walmart associates have been detained by the Chongqing Public Security Bureau (PSB). Walmart China is cooperating fully with the PSB and doing everything possible to conclude the investigation," Walmart said in a statement Monday.
Associated Press reported that some of Walmart's stores were ordered shutdown in Chongqing and the company was ordered to pay 2.7 million yuan ($421,000) worth of fines for allegedly mislabeling its regular pork as "organic."
"We were officially directed earlier today by the Chongqing Administration of Industry and Commerce (AIC) to temporarily close some of our stores in Chongqing for a period of 15 days. We believe the closure has come about as a result of a recent investigation in some of our stores in Chongqing due to the 'green pork' incident by which the rights of consumers were infringed," Walmart said.
Walmart said the presence of the investigating team from its China headquarters is part of the company's commitment to ensuring that its stores in Chongqing follow Walmart’s strict inspection and management policies "and taking all necessary steps to ensure this does not recur."
"Walmart is committed to protecting the rights of consumers and will spare no efforts in this regard. The closure of the stores in Chongqing for the next 15 days will allow us time to focus on implementing corrective actions," it said.
Walmart said it is an important part of the Chongqing community and cares deeply about the well being of the community, with over 3000 of its own associates living and working in Chongqing.
"We are deeply sorry for the inconvenience this may cause our customers and are even more determined to meet the service expectations they have of us," Walmart said.
Walmart entered the Chinese market and opened its first supercenter and Sam’s Club in Shenzhen in 1996.
Currently, Walmart operates a number of store formats in China including Supercenters, Sam’s Clubs, and Neighborhood Markets. As of August 5, 2010, Walmart said it had 189 units in 101 cities, and created over 50,000 job opportunities across China.