Advertisement is not real in business

Ajisen (China) is one of the largest restaurant chains in the mainland, reportedly used cheap flavoring powder instead of pork bone in its noodle soup.

Noodle chai
Ajise
Holdings released its advertisement saying the soup was made by good pork bones with great nutrition since the soup contains large amount of calcium.

The advertisement said the calcium content is four times of milk and 10 times that of meat.

Recently the company admitted the soup was diluted from base concentrate and other ingredients, but said no powder had been used. It was proved that the nutrition content is 30 times less than claimed in an earlier advertisement

One kilogram of soup concentrate can make about 100 bowls of noodle soup, its spokesman said.

The franchisee paid a penalty of more than 780,000 yuan (HK$944,580) for using illegal additives in 4.58 million packages of instant noodles in 2009.

However, this was not disclosed in the company's 2010 annual report.

Ajisen shares plunged nearly 10 percent on Monday when the soup report came out. The noodle chain tried to reduce the impact by rewriting the nutrition information.

The untrue statement in the business caused big losses for the company.

For online e-business, we can see many companies who may have posted untrue picture or better picture to replace the real one or use untrue statements to exaggerate the function of the products.

IBUonline is an innovative B2B portal. IBUonline is also trying to restrict overstated advertisement on the portal. But it may not take perfect effect.

IBUonline suggest international buyers need to do more investigation to verify the suppliers’ information to avoid international trade business risks.