Chinese TV Show CCTV Accuses Nike Inc (NKE) of Misleading Consumers

Nike Inc (NYSE:NKE) has been the target of Chinese TV show CCTV over misleading advertisements.

Chinese TV Show CCTV Accuses Nike Inc (NKE) of Misleading Consumers

The Chinese TV show called foul on Nike Inc for selling shoes in the country that weren’t as advertised. This includes 300 pairs of Hyperdunk shoes that were claimed to have airbags in them. The shoes don’t actually contain airbags.

Nike Inc has already apologized to customers for the misleading advertisements. It has also been offering to compensate unhappy customers that bought the shoes. NKE is also working with government regulators to answer questions about the misleading advertisements.

The CCTV airs once a year and it includes reports on investigations into companies. Nike Inc isn’t the only company that has been called out by it. It previously took on Apple Inc. (NASDAQ:AAPL) and got the company to apologizes for its practices in China in 2013. However, some viewers claim that the show has gotten stale in recent years, reports Reuters.

The report calling out Nike Inc for the misleading advertising comes as the company sees growth in China. The country is its second-largest market and it saw sales in China increase by 17% during its most recent earnings report. This increase helps the company as it faces stiffer competition in the United States.

“One report is probably not a lot to be concerned about,” Brian Yarbrough, an Edward Jones analyst, told Bloomberg. “But that could change if it becomes bigger and you see more press about it.”

NKE stock was down slightly as of Thursday afternoon.


Article printed from InvestorPlace Media, https://investorplace.com/2017/03/nike-inc-cctv-nke/.

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