The Beijing Administration for Industry and Commerce (BAIC), which is responsible for regulating market order, said it will punish those involved in irregular market activities.

It follows a price war currently being waged in commercial centers with all major stores cutting the prices of goods to spur trade.

Eye-catching advertisements have appeared in many shopping centers, granting a 50 percent discount during the festival and sometimes more.

A large shopping mall in the Xidan business district of Beijing has promised shoppers a "55 yuan (US$6.64) voucher for every 100 yuan (US$12) spent."

However, close inspection of the fine-print revealed "special goods are not included."

A consumer, surnamed Liu, claimed many products are not included in the deal. She complained the advertisements were misleading.

The situation was similar in some stores in Wangfujing, Beijing's largest shopping area.

A marketing employee in the Beijing Department Store in Wangfujing said it was a common practice every year to attract consumers.

"It is just like a trap laid by shops," Liu said.

According to BAIC, such a practice to catch consumer attention is a violation of the law against unfair competition.

The BAIC said it may severely punish such practice with a fine ranging from 10,000 yuan (US$1,200) to 200,000 yuan (US$24,000).

Long Zhibing, an official with the Beijing Consumers' Association, said a variety of advertisements placed by shops had misled consumers.

Such promotion techniques were against the Law of Protection on Consumers' Rights and Interests, and will inevitably disturb normal market order, Long said.

In particular, many shops proclaimed to reserve the right of interpretation in their sales promotion. But lawyers said shops do not have the right to make a judgement when disputes between shops and consumers occur.

(China Daily January 30, 2003)