Chinese Authorities Investigate Shanghai Volkswagen Dealer Over Audi Promo

Chinese authorities have launched an investigation into a Shanghai Volkswagen dealership after a promotion tied to a tennis star’s victory offered model cars instead of actual vehicles, the Seoul newspaper reported.

The promotion, which used the slogan “Buy One Audi, Get One Free” and was announced to celebrate Chinese tennis player Zheng Qinwen’s China Open win, offered a 1/18th-scale model car as the prize, according to the report. The Shanghai Zhading District Market Supervision Administration confirmed it has opened a formal investigation into the Shanghai Volkswagen dealership.

The controversy began on November 11, when the company posted on its official account with the headline, “Congratulations Zheng Qinwen’s Victory! AUDI All Models 1+1,” the Seoul newspaper reported. However, the prize detailed in the post was not a car but a miniature model. A sales employee told local reporters the model’s price was “less than 1,000 yuan,” the report stated.

The promotion was also limited to specific models, not the entire Audi lineup. It applied only to the E5 and E7X models from a separate electric vehicle brand that uses the English “AUDI” logo instead of the traditional emblem, the outlet reported.

After criticism that the promotion misled consumers, the company added the phrase “model car giveaway” to the post the following day. The company maintained that it had always specified the prize in the body of the post, the report said. A customer service representative explained that the promotion ran from October 1 to 31 and that buyers would receive a model of the same car they purchased, according to the outlet.

The company later offered additional incentives, including tennis balls for test drives from November 13-18 and a lottery for a one-year lease of one of 24 vehicles for new and existing customers, but public anger did not subside, the Seoul newspaper reported.

Zheng Qinwen, who became the first Chinese player to win the China Open women’s singles title and secured her first career WTA 1000-level championship, has been celebrated nationwide. Her victory prompted congratulatory posts and posters from numerous Chinese companies, including smartphone maker Vivo, dairy brand Yili, and Alibaba’s AI service Qwen and payment platform Alipay, the outlet reported.

The key issue in the Volkswagen case is whether the advertisement’s title adequately disclosed the prize and eligibility, the report noted. While the company revised its wording and added perks, the investigation’s outcome, including any potential violations or penalties, remains undecided, the outlet reported.