BEIJING UNRAVELS ENDORSEMENT SCAM
By Adnews Staff
A Beijing committee set up by an advertising agency is being prosecuted for conducting false appraisals of products marketed by the agency's clients. The Beijing Tieliu Advertising Co. set up the committee, claiming it was formed by several news media. In return for the favorable publicity, each manufacturer would pay over $3,000(US). Some of the products praised have been found to be substandard. The committee was not officially registered or approved by any local civil affairs departments or administrations for industry and commerce in Beijing. The committee has been ordered to stop making appraisals and the manufacturers are no longer allowed to cite the committee's endorsements. The ad agency was ordered to return all fees collected by the illegal committee.