BEIJING-The Chinese government guesthouse that has hosted
dignitaries from Richard Nixon to Vladimir Putin is suing Dutch
electronics group Koninklijke Philips NV over an online
advertisement.
The Diaoyutai State Guesthouse said in a statement posted to the
website of Beijing's Haidian District Court on Tuesday that Philips
used the guesthouse's name without permission in advertisements for
air purifiers. The lawsuit alleges Philips used slogans such as
"responsible for air purifying at the state guesthouse during APEC
in 2014"--a reference to a regional leadership summit--and "used at
the state guesthouse to serve leaders of every country" to promote
its products on e-commerce websites.
The guesthouse is asking for compensation of 100,000 yuan
($16,101) and an apology from Philips, the statement said. The
guesthouse never purchased or used the Philips products and
Diaoyutai has sent a letter to Philips' lawyers requiring
explanation, the statement said.
A Philips spokesman said the company is investigating the matter
and cannot provide further comment. Faxed questions to the
guesthouse seeking additional comment went unanswered.
The lawsuit comes on the heels of a rocky time for Philips in
China. The Amsterdam-based company has struggled with declining
sales in China in recent quarters. In 2014, sales in China declined
nearly 11% to 2.4 billion euros ($2.6 billion) from the previous
year. Last week, the conglomerate appointed a new chief executive
officer for Greater China, Andy Ho, who will take over in
November.
In September, China's new advertising law, which allows
regulators to strengthen punishment for false advertising, goes
into effect. Companies have been scrambling to understand the new
law, which some business leaders say is vague. The government has
said the law clarifies what constitutes a misleading ad, such as
the providing of incorrect information on the performance, uses,
size or function of a product.
Alyssa Abkowitz and Lilian Lin
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