Guazi used car iQiyi sentenced to 1 million compensation for false propaganda

On February 22, the Tianyancha APP showed that the first-instance civil judgment on unfair competition disputes between Renrenche, iQiyi, and Guazi second-hand car was made public.

The title picture comes from the 'original picture'

On February 22, the Tianyancha app showed that the civil judgment of the first instance of unfair competition disputes between Renrenche and iQiyi, Guazi second-hand car, etc., was made public.

The judgment requires Guazi second-hand car and its parent company Chehaoduo Group and iQiyi to immediately stop the false propaganda involved in the case from the effective date of the judgment, and perform the relevant information on the official website within 30 days from the effective date of the judgment. The obligation to publish a statement on the platform for three consecutive days in order to eliminate the negative impact of the false propaganda involved in the case on the plaintiff’s people and vehicles, and to compensate the people and vehicles for economic losses of 1 million yuan.

In September 2018, Renrenche sued Chehaoduo Group, Guazi Second-hand Cars, and iQiyi to the court. The reason for the prosecution was that in the self-made show 'China New Rap' by iQiyi, there were many cars. The company and Guazi second-hand car put advertisements containing false propaganda content in the program, claiming that Guazi second-hand car direct sales network is the 'industry leader' and 'championPropaganda phrases such as 'I am the champion.'

Renrenche believes that the above-mentioned behavior of Chehaoduo Group and Guazi Second-hand Cars is a false propaganda that excessively exaggerates their actual level and misleads the relevant public in order to gain a competitive advantage. The company also believes that iQiyi, as an advertising platform, constituted a joint infringement with Chehaoduo Company and Jinggua Subsidiary due to the advertisements involved in the self-made programs.

On May 17, 2019, Guazi second-hand car was fined 12.5 million yuan by Beijing Haidian District Administration for Industry and Commerce for alleged false propaganda. At that time, the Haidian Branch of Industry and Commerce believed that the term “far ahead” of Guazi second-hand cars was improperly used, did not conform to the facts, violated relevant regulations of the Advertising Law, and was suspected of false propaganda.

Article 9 (3) of the new 'Advertising Law' stipulates that the words 'nationalFines ranging from 10,000 yuan to 1 million yuan.