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The encyclopedia · Advertising & PR · Marketing decision · 2018

Guazi Ershou Che fined ¥12.5M: 'volume already far ahead' in its first year

Guazi's ad claimed 'in our first year, volume is already far ahead' — regulators fined it ¥12.5M for false advertising; a court later added ¥3M.

Guazi Ershou Che · 2018-11

What happened

Guazi Ershou Che (瓜子二手车), one of China's biggest used-car platforms, staked its 2018 advertising on a superlative claim: '创办一年,成交量就已遥遥领先' (in its first year, our transaction volume is already far ahead). The slogan was pushed heavily in national advertising.

On 30 November 2018, the Beijing Administration for Industry and Commerce's Haidian branch fined Guazi's operating company 金瓜子科技 ¥12.5 million for violating the Advertising Law with the misleading superlative — a record fine at the time for the category. The regulator found the 'far ahead' claim had no basis the consumer could verify.

The dispute did not end with the fine. In March 2022, the Beijing Intellectual Property Court issued a final ruling in the civil case: Guazi's claim constituted false advertising and disparagement against rival Renren Che (人人车), ordering Guazi to pay ¥3 million in compensation.

The case became a reference point for how aggressively China's advertising regulators and courts treat unverifiable superlative claims between direct competitors.

Why it happened

  • A superlative ('leading', 'far ahead') is the hardest claim to substantiate and the first one regulators and rivals attack.
  • The claim was aimed directly at a competitor, so the winner of the advertising war was decided in court, not in the market.
  • The scale of the fine — ¥12.5 million — reflected how much the slogan had been broadcast, turning a copy line into a quantifiable legal bill.
  • Broadcasting the claim nationwide multiplied both the exposure and the penalty, because the Advertising Law prices the fine on reach.
What it costfined ¥12.5M; later ordered to pay ¥3M to Renren Checostly

The lesson

A superlative is a promise a regulator can price and a rival can litigate. Guazi's 'far ahead' claim cost ¥12.5M in fines plus ¥3M in damages — an ad war paid in penalties, not market share.

Aftermath

The ¥12.5 million fine was among the largest advertising penalties in China at the time and was widely reported as a warning that superlative claims in a crowded, competitive category carry real legal cost. The 2022 civil ruling added damages on top, making the Guazi case a standard citation whenever Chinese platforms debate how far an advertising claim can stretch.

Sources

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