Carrefour accused of price gouging in N. China

TAIYUAN -- A Carrefour outlet in the city of Taiyuan, capital of North China's Shanxi province, has been implicated in a price gouging scandal after an initial inspection by local pricing authorities, the city's pricing bureau announced on Monday.

The Carrefour outlet has been accused of allegedly displaying fake price tags and then charging consumers a higher amount at check-out counters.

"Carrefour's activity constitutes typical price fraud. A thorough inspection will be carried out in the outlet and the size of the fine will be decided after the inspection," said Li Zhenzhou, deputy director of the local pricing authority.

The retailer had not responded as of noon on Monday.

In June, six Carrefour outlets in Wuhan, capital of Central China's Hubei province, were fined more than 450,000 yuan ($72,239) for price gouging.

At the start of 2011, Carrefour was found to be involved in price fraud during nationwide checks, incurring the wrath of critics who accused them of ignoring consumers' interests in China.