China fines 15 educational firms for false advertising and fraud (updated)

Scholar Education

01/06/2021 04:42

(Adds local governments fines on educational firms)
    BEIJING, June 1 (Reuters) - China's market regulator fined
15 private tutoring firms a combined 36.5 million yuan ($5.73
million) for false advertising and pricing frauds, the official
People's Daily newspaper reported on Tuesday, amid a crackdown
on the sector.
    The 15 companies include Tencent  0700.HK -backed Yuanfudao,
Alibaba  BABA.N -backed Zuoyebang, and New Oriental Education &
Technology Group  9901.HK , the People's Daily said, citing a
news briefing by the regulator.
    The news comes a day after China announced it would allow
couples to have a third child, amid rising concern about a
declining fertility rate that many in China blame on the high
cost of raising families. Most children in China undergo private
tuition in addition to public schooling.
    Some courses offered by the companies were sold at just 1
yuan, discounts that masked the eventual full price, the
newspaper reported.
    The penalised firms included several with U.S. or Hong Kong
listings, including TAL Education Group  TAL.N , OneSmart
Education Group  ONE.N , Beststudy Education Group  3978.HK  and
Scholar Education  1769.HK .
    On the same day, Guangdong and Shanghai provincial-level
market regulators fined private education companies over pricing
and advertising frauds.
    Six companies were fined a combined of 14 million yuan in
Guangdong, according to a statement from the local market
regulator. 
    It said the companies made up teachers' diplomas, teaching
qualifications and experience, and made false promises to
students.
    The Shanghai market regulator announced on its WeChat
account that it had fined four companies, including English
teaching companies Dada and Wall Street English, a total of 10
million yuan.
    
($1 = 6.3667 Chinese yuan)

 (Reporting by Lusha Zhang, Sophie Yu and Tony Munroe; Editing
by Christian Schmollinger, Raju Gopalakrishnan and Gerry Doyle)
 ((LushaZhang1@thomsonreuters.com; 8610-56692106;))