Alibaba: China fines online education companies for misleading consumers

Beijing: China’s market regulator said on Monday it had fined online education startups Yuanfudao and Zuoyebang 2.5 million yuan ($ 388,754) each for misleading consumers.

Zuoyebang, an online tutor backed by Alibaba Group Holding Ltd., used deceptive advertising, while the education technology company backed by Tencent Holdings Ltd. Yuanfudao was using deceptive prices, the regulator said in a statement.

Yuanfudao said in a statement that he conducted a self-assessment of his products and “rectified the associated misleading markers.” Zuoyebang said he “sincerely accepts the administrative sanction.”

Chinese regulators have stepped up efforts to curb excessive advertising and bogus pricing by education companies. Beijing local regulators last month fined four education agencies, including GSX and Koolearn, 500,000 yuan ($ 77,313.21) for misleading customers with advertising and pricing. falsehoods.

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