Wal-Mart Fined In China For The Third Time In 2011

October 11 00:00 2011

New York, October 11 (RainbowNewsLine.com) – The world largest retailer, Wal-Mart (NYSE: WMT) has been facing some serious issues in China. The Chongqing Municipal Corporation has ordered Wal-Mart to shut down more than 10 of its stores in the province as a punishment for repeatedly ignoring the warnings issued by the regulator. Along with this, Wal-Mart has to shell out 2.69 million Yuan (close to $4,21,200) as monetary fine.

Wal-Mart is facing the music this time because it has allegedly sold pork for two years deceiving the common public and making them believe it is organic pork. Prior to this, Wal-Mart faced similar issues in March. Back then, it was selling duck meat to people in the Chongqing province after its expiry date.

Wal-Mart had faced an issue in January too. During that period, Wal-mart was reprimanded along with French major retailer Carrefour for mis-stating the price on the goods.

It is surprising that Wal-Mart has had major difficulties in its operations in the Chongqing city only. It has been repeatedly toeing the legal line drawn by the regulators and obviously faces a difficult future. The management in the region is a likely target for change as Wal-Marts reputation as a global major is taking a serious hit.