Authorities in Shanghai recently fined Shanghai Baishide Electronics Company, the main distributor for global computer peripheral manufacturer Logitech, 200,000 yuan (nearly 800 million dong) for an advertisement deemed insulting to consumers. The controversial video, released on social media in late March, sparked widespread public outrage.
The advertisement featured text that read: "You say you won't spend a penny. But once I lower the price, won't you flock to me like a pack of dogs?" This offensive comparison led to the video's retraction the following day and triggered a regulatory investigation, culminating in the recently issued penalty.
Given China's status as Logitech's second-largest market, contributing approximately 10% of its revenue, the company swiftly issued an apology. Logitech acknowledged the content as "extremely inappropriate" and stated that the ad was released by a Baishide employee who bypassed the internal review process. Baishide also apologized and committed to improving its management oversight.
The incident significantly damaged Logitech's reputation in China, drawing condemnation from many Internet users. One user, finding the fine relatively lenient, commented, "I will avoid this brand in the future. I hope authorities punish them more severely." This event highlights the strict scrutiny advertising content faces in China's vast consumer market, where inappropriate campaigns frequently incur penalties.
This is not an isolated incident. Four years ago, the Shanghai branch of Guangfa Bank and its advertising agency received a combined fine of 900,000 yuan (3.5 billion dong) for a credit card advertisement. That campaign featured a woman with a visibly large belly and the line: "Don't tell others that your belly grew because of us." Although intended to promote dining benefits for cardholders, the ad was accused of violating public order and insulting women by implying pregnancy.
More recently, British consumer goods company Dettol faced backlash for a "disastrous" communication campaign. In that ad, a man controversially compared his ex-girlfriend to a "used service, item" that needed to be "disinfected" by Dettol's product, sparking further debate on advertising ethics.
Hai Thu (According to SCMP)