China’s Fraudbusters Crack Down on Fake Goods – Businessweek

Xu Dajiang spends at least three days a week in supermarkets in China scrutinizing products. He’s not shopping for bargains; he’s looking for any sign of flaws—an expired sell-by date, a forbidden ingredient, an exaggerated claim on a package, or outright counterfeit.

Juts Do It

Earning a living as a professional fraudbuster, Xu is a consumer turned consumer protector, searching for any wrongdoing by local and multinational companies that can be used to file a claim with a retailer and collect damages. “There will always be manufacturers who treat the law with indifference and flout it no matter how much you tighten the regulations,” he says. “That’s when fraudbusters like me have a role to play.”

Fraudbusting is flourishing in China, thanks to continued food and product safety scandals and a revised consumer protection law enacted in March that increases compensation for those who buy damaged or fake goods. The law allows consumers to try to recoup as much as three times the cost of the original product or service purchased. They can file class actions for the first time. The law also carries stiffer penalties for businesses that mislead shoppers.

via China’s Fraudbusters Crack Down on Fake Goods – Businessweek.

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