A NANSHAN-BASED company was recently fined some 14.53 million yuan (US$2.27 million) for passing off powdered drink as infant formula and failing to create sales records, according to DT News.

The company’s senior executive held responsible was also fined 2.84 million yuan.

The company, named Yikangyuan Health Technology Co. Ltd., was found by the city’s market supervision authority entrusting a Tianjin-based manufacturer to produce over 30,000 cans of a solid drink called Teyishan.

The authority found that the company had falsely promoted the solid drink as a milk powder and didn’t set up a system to keep track of sales. It also didn’t save sales invoices as required.

The report showed that the Shenzhen Administration for Market Regulation has cooperated with other departments to fine companies about 23.75 million yuan in total for irregularities since this April.

In another case, six suspects were caught by the police after the market authority found they sold fake brand products via livestreaming Sept. 2 during a raid in Longgang District after receiving a tipoff from the public.

It was found that the suspects had sold over 300,000 yuan worth of fake cosmetic products, with their inventory amounting to 1.57 million yuan, according to the DT News report.

At the same time, another company, Tianyu Health Technology Co. Ltd., was found using tempting promotional means such as offering free meals and giving out travel coupons and gifts to attract seniors to attend events, where they were persuaded to buy health products with fraudulent claims that it can help treat diseases.

Products worth nearly 55,000 yuan, which were used for the illegal promotional activities, were seized July 25, said the report.  (Wang Jingli)