Do not ruin long-term plans for short-term gains
[4] Compiled from: Red Star News
Case review
Recently, fashion retail giant H&M was fined 13.35 yuan for passing off substandard products as qualified products and selling them.
According to the administrative penalty decision issued by the Market Supervision Administration of Putuo District, Shanghai, the H&M affiliated company Hennes & Mauritz (Shanghai) Commercial Co., Ltd.'s shirt with item number 047400 was tested and found to be non-compliant in the rub fastness test item according to relevant standards, and was deemed unqualified. The Market Supervision Administration filed a case against the company on November 11, 2020.
Upon investigation, Haines Morris Company purchased 374 shirts that were unqualified products but were passed off as qualified products. The unit selling price was 129 yuan, 373 of which have been sold, with a total sales amount of 48,117 yuan, and the remaining one is a sampled reserve product. The value of the shirts is 48,246 yuan, and the illegal gains amount to 37,035.17 yuan.
The Putuo District Market Supervision Bureau stated that the company's actions have violated the 'Product Quality Law'.
On January 25, 2021, the Putuo District Market Supervision Bureau decided to impose a fine of RMB 96,492 on the company, confiscate illegal gains of RMB 37,035.17, and confiscate one shirt of model number 047400 that was illegally sold as a qualified product but was actually an unqualified product.
Relevant legal provisions
Product Quality Law
Article 39
When selling products, sellers shall not adulterate or mix impurities, shall not pass off fake products as genuine or inferior products as superior, and shall not pass off non-conforming products as conforming products.
Article 50
Adulterating or mixing impurities into products, passing off fake products as genuine, inferior products as high-quality, or substandard products as qualified shall result in an order to cease production and sales, confiscation of the illegally produced and sold products, and a fine of not less than 50% but not more than three times the value of the illegally produced and sold products; if there is illegal income, it shall be confiscated; if the circumstances are serious, the business license shall be revoked; if a crime is constituted, criminal liability shall be pursued according to law.
[1] The author's perspective
Many consumers who have purchased H&M expressed after seeing this news, "So it wasn't just my imagination that the quality is poor." Easily deformed, poor styles, lots of loose threads... H&M's clothing seems to have always been criticized in terms of quality control. But just imagine, in the fast fashion background created by H&M, with a new batch of styles every two weeks on average, with such rapid updates, how would there be time to truly develop designs and ensure product quality? Therefore, numerous instances of style copying and neglecting quality have become taken for granted. Little do they realize, this irresponsible behavior, while appeasing consumers, also lays a major hidden risk for their company in the future.
I would like to remind that the production and sale of substandard products will not only result in the confiscation of illegal gains but also additional penalties, and in serious cases, may even lead to criminal liability. Food, clothing, housing, and transportation are fundamental to human survival. We choose brands because we trust them, and if a brand cannot even guarantee the most basic quality, it is tantamount to committing suicide. This time, H&M has lost not only consumers but also the future of its own company. Do not ruin long-term plans for short-term profits.
