Watches sold online called fraud

SWATCH Group's subsidiary in China has proved that the Tissot watches sold on group buying website Gaopeng are counterfeit after the unusually low price aroused suspicion on the part of several customers who sought authentication.

The official dealer of the Swiss watch brand in China said on Saturday it has reported the case to the police to safeguard its trademark and intellectual property and is willing to help Gaopeng's customers with authentication at Tissot's outlets.

Hundreds of customers spent 690 yuan (US$109) on a Tissot PRC200 watch in a group buying deal provided by Gaopeng. The watch usually goes for around 3,000 yuan on the retail market.

The affected customers have teamed up to seek legal action against the website and its supplier. Gaopeng, a joint venture established by Groupon and Tencent, at first denied the accusations by the customers, and insisted the watches are genuine.

"We have been investigating the case since we received the complaints, including the authenticity of the watches and the credentials of our supplier. In the meantime, we have canceled all the unfulfilled orders," Gaopeng said in a statement released last Thursday.

The website offered full refunds, citing as the reason that the wrapping and guarantees were not original.

A spokesman surnamed Yang from the company's after-sales department admitted that the supplier made the wrapping and guarantees themselves, which are inferior to the real ones.

A phone call record revealed that a Gaopeng representative assured a customer the watch is genuine and suggested a refund as a way to minimize the loss.

This isn't the first time Gaopeng has gotten into trouble this year. It was accused of a lottery fraud in May after netizens found out the two winners of white iPhone 4 were its own employees. The company concluded it was an embezzlement case and fired the vice president in charge of the lottery organization.

Gaopeng posted a net loss of US$46.5 million since it was established in May, and laid off 350 employees in August.

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