Nikon to Fix Camera Flaws Cited by China TV Consumer Show

Nikon Corp. (7731) said it will fix

digital cameras at no charge after claims on Chinese state-run

television that product defects caused “black spots” on

photographs.

The Japanese camera maker will service its D600 digital

cameras even after warranties expire, spokesman Ryota Satake
said by phone, 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

that has previously targeted companies including Apple Inc. and

Volkswagen AG. The show also alleged that a business owned by

Datang’s Gohigh Data Networks Technology Co. helped plant

software in mobile phones to collect private information.

“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 responses 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

The Nikkei newspaper reported on 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 said in a statement on its website that a unit

conducts mobile-application promotion services and that the

company is “urgently verifying related details.”

State media increasingly plays 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.

Boosting Protection

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) 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: Gregory Turk in

Shanghai at +86-21-6104-3037 or gturk2@bloomberg.net

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

Gregory Turk, Jim McDonald

Nikon to Fix Camera Flaws Cited by China TV Consumer Show