Walmart closures over wrongful labelling, China

By Kacey Culliney

- Last updated on GMT

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Walmart closures over wrongful labelling, China
Walmart has been ordered to temporarily close ten of its stores by Chinese authorities due to allegedly mislabelling regular pork as organic pork.

Following an investigation conducted by the Chongqing local government, the Administration of Industry and Commerce told Walmart to close its stores on Monday for 15 days while inspections took place.

The company said it is fully cooperating with the authorities during this period.

“The closure of the stores in Chongqing for the next fifteen days will allow us time to focus on implementing corrective actions,” ​it said.

The investigation had been on-going for several months and findings revealed that Walmart had been wrongfully labelling regular pork as organic, breaching regulation.

Walmart said it has sent associates from its China headquarters to work with the authorities over the next fortnight.

The retail giant commented that the team is ensuring all necessary steps are taken to ensure the stores adhere to inspection and management policies and that this does not reoccur.

“Walmart is committed to protecting the rights of consumers and will spare no efforts in this regard,”​ it added.

Previous problems

In 2007, Walmart recalled some of its organic vegetables after an inspection revealed that some had been treated with pesticides.

Earlier this year, China fined Walmart for deceptive price labelling.

Walmart has been operating in China for 15 years and has nearly 300 stores throughout the country. Its presence in Chongqing city is strong, with 10 stores and two affiliates.

Related topics: Policy, Supply chain, Meat, China, East Asia

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