Nike Branded with False Advertising in China

Nike knew that it was trying to cheat customers in China with a false advertising campaign, alleges a Beijing-based consumer activist who feels the firm’s recent offer to refund customers part of the purchase price is grossly inadequate.

Wang Hai said he paid 1299 yuan ($203) in Beijing for a pair of Nike shoes advertised as having two Zoom Air cushions in each heel. In fact, the shoes only had a single air cushion in each heel though they cost 500 yuan ($78) more than than the two-cushion version sold in the U.S. Wang is the manager of a Beijing consumer advocacy group.

Last Thursday Nike admitted that it found the advertisement falsely stated that its Nike Zoom Hyperdunk 2011 contains two Zoom Air cushions and that the customers who bought the shoes before September 9, 2011 will be refunded up to 300 yuan ($47).

Nike’s response has failed to satisfy Wang.

“Nike deleted the description of the two air cushions on Wednesday, which showed they realized they were cheating Chinese consumers with false advertising,” Wang told China Daily. “They are just prevaricating instead of apologizing or compensating consumers.”

Wang argues that because Nike’s advertisement sought to cheat customers, the company should compensate buyers twice the amount paid for the shoes. He is considering a lawsuit against Nike if it fails to increase its offer of compensation.

Some consumer rights advocates see the incident as an example of the lower standard that some foreign companies employ when dealing with China’s consumers.

“Some businesses change their business model and integrity in China,” said Qiu Baochang of the China Consumers’ Association. “But consumers everywhere should be treated the same.”