cold weather outfitter reported a delay in the opening of its flagship store in the East Asian nation, following the detention of Huawei executive Meng Wanzhou in Vancouver. Earlier this year, the company was fined by Chinese regulators for allegedly misleading customers with certain advertisements.
Tensions between Canada Goose and ruling Communist Party do not appear to be improving anytime soon, as a Chinese state-run newspaper warned that the company may have violated consumer laws in the country. On a social media account on Thursday (2 Dec), the People’s Daily claimed that the winter clothing manufacturer has used a “discriminative” return policy in China, warning the company and other foreign brands to supply products and services to the country if they intend to enjoy market growth.
“For Canada Goose, which has more stores in China than in its home market, it’s very ugly to discriminate against Chinese consumers while enjoying sales here,” the commentary said. “If you want to enjoy the market’s growth, please spend your efforts providing good products and services, otherwise you’ll lose consumers’ trust and be abandoned by the market.”
The allegations were made following a complaint filed by a woman who was unable to get a refund for a down coat she had brought from a store. Accordingly, Canada Goose is expected to face a second summons by the Consumer Council in Shanghai to explain its reasons for having a different return policy in China than elsewhere. The consumer regulator said it was dissatisfied with the previous explanation given by the company and therefore, intends to speak with it again this week.
