Luckin Coffee and Affiliates Slapped With Fines by Chinese Regulator
A detailed investigation into the business practices of Luckin Coffee (OTC: LKNC.Y) by a key Chinese regulator has found widespread fraud and generated a raft of fines. The State Administration for Market Regulation announced Tuesday it has imposed financial penalties on two of the company's business units and a dizzying 43 outside companies. These fines total 61 million yuan ($9 million).
Luckin was also found to have misled its customers during certain promotions, and to have engaged in anti-competitive practices. The regulator also accused the company of using false data in its promotional activities, although it did not provide details.
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Source Fool.com
