Milk tea shop accused of paying people to queue
An employee at the shop packs tea.
An investigation is underway after a milk tea shop in downtown Shanghai's Huangpu District was alleged to have been paying people to queue up, giving the impression that business was booming in an effort to attract franchisees.
The shop in the People's Square area — Chazhilan — was said to be paying 40 yuan (US$6.1) to “customers” hired online, according to the Shanghai Morning Post.
The shop was seeking seven franchisees paying 210,000 yuan each, its report said.
It claimed its turnover at the People's Square outlet was up to 15,000 yuan a day and had videos showing customers buying tea, the report added.
The milk tea shop which is under investigation
Business was slack at the shop on workdays, and it was surprising that it had so many consumers all of a sudden, a nearby business said.
Huangpu District Administration for Market Regulation said on Thursday that an investigation had been launched.
Under China’s unfair competition law, businesses are banned from making false claims or using misleading commercial promotions to cheat customers.
