Monday, 17 March 2014

Nikon Halts China Sales of Camera After TV Show Alleges Flaws

Nikon Corp. (7731) will stop selling a

digital camera model in China and offer free repairs, following

claims on Chinese state-run television that product defects

caused “black spots” on photographs.


The Tokyo-based company received a Chinese government order

today to stop selling its D600 cameras and asked dealers to halt

sales, Ryota Satake, a Nikon spokesman, said by phone. Nikon had

earlier said it would service the models even after warranties

expire, after China Central Television showed hidden-camera

footage of customers demanding refunds and exchanges while local

service staff blamed dust and smog for the spots.


Nikon’s alleged defects were highlighted in a March 15

broadcast marking World Consumer Rights Day, an annual program

in China that has previously targeted companies including Apple

Inc. and Volkswagen AG. The show last week also said that a

business owned by Gohigh Data Networks Technology Co. helped

plant software in mobile phones to collect private information

without users’ awareness.


“I’m sure some of the big Western multinationals are

breathing a collective sigh of relief that they weren’t

targeted,” Torsten Stocker, partner at consulting firm A.T.

Kearney, said by phone yesterday.


The program, which is watched closely by foreign companies

and prompts some to prepare emergency response plans, “didn’t

go for as spectacular or as big a target as in previous years,”

Stocker said. “Maybe they are just trying to show that they are

looking at a broad range of companies, not just foreign

companies.”


Class-Action Suit


Nikon fell 1.7 percent to 1,730 yen at the close of trading

in Tokyo, extending this year’s decline to 14 percent.


Today’s order to halt sales came from the Shanghai

Administration for Industry and Commerce, Satake said. While

Nikon has already stopped direct sales of the D600, some dealers

still have the model in stock, and Nikon will recall them, he

said.


The Nikkei newspaper said March 10 that U.S. customers had

raised a class-action lawsuit against Nikon claiming D600

defects. Satake said the manufacturer is aware of the D600

camera issue and “aims to offer the same standard service for

customers all over the world.”


The company posted a statement on Feb. 26 saying it would

provide free service for the D600 after warranties run out,

including cleaning and a free exchange of parts. The Chinese

broadcast highlighted the statement as insufficient to address a

recurring defect in the camera.


Gohigh Halted


In response to the television show segment about the mobile

phone software that collects private information, Gohigh said it

hasn’t spreaded malicious software or collected users’ personal

information, according to a statement on its website.


Trading in the company’s shares was temporarily halted

today in Shenzhen.


State media increasingly play a role in advocating on

behalf of consumers as concern grows over China’s food and drug

safety. Milk tainted with melamine, a toxic chemical used to

make plastic and tan leather, was blamed for the deaths of at

least six babies in 2008, with tens of thousands of children

hospitalized. The government last year investigated companies

that paid doctors to drum up drug sales, and cracked down on

crime rings selling adulterated meat.


Cracking Down


A tougher consumer protection law, which increases

penalties for fraud and false advertising, took effect March 15.

It stipulates that most products sold online, through TV

marketing, by telephone and mail should be returnable within

seven days without the need to provide a reason, the official

Xinhua News Agency reported in October.


Last year’s CCTV “315 Gala” accused Apple of offering

Chinese consumers warranties that weren’t comparable to those

available in other markets. The company was then lambasted by

the People’s Daily newspaper for arrogance and poor customer

service. The SAIC followed by calling on local authorities to

increase their supervision of clauses in Apple’s (AAPL:US) warranty

policies.


Apple later changed its policy to offer full replacements

of its iPhone 4 and 4S models and reset the warranty to one

year. Previously, the company provided new parts and didn’t

extend the warranty. Apple’s Chief Executive Officer Tim Cook

issued a public apology to Chinese consumers April 2.


Volkswagen, Europe’s largest automaker, announced a vehicle

recall after the show aired complaints from customers of

abnormal vibrations, loss of power and sudden acceleration in

models fitted with a direct-shift gearbox.


Local companies have also been targeted. Anhui Jianghuai

Automotive Co. recalled more than 100,000 vehicles after last

year’s program alleged it sold cars with rusted chassis. The

automaker’s shares slumped 10 percent, the most in more than

four years, in Shanghai on the next trading day.


To contact Bloomberg News staff for this story:

Bloomberg News in Beijing at

emailtv@bloomberg.net


To contact the editors responsible for this story:

John Liu at

jliu42@bloomberg.net

Terje Langeland, Dave McCombs


Article source: http://www.photographyblog.com/news/canon_eos_1200d_hands_on_photos/


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