Restaurant operator Kentucky Fried Chicken (KFC) said yesterday that it has filed a lawsuit against three companies in China whose social media accounts have spread false claims about its food, including that its chickens have eight legs.
The case filed by China’s biggest restaurant operator comes as the government intensifies a campaign to clean up rumors on social media.
Internet marketers have been convicted of trying to manipulate online sentiment on behalf of clients by posting false information about competitors or deleting critical posts.
In an announcement posted on its Chinese Web site, KFC said one of the best-known fake rumors was that the chickens used by the company are genetically modified and have six wings and eight legs.
APOLOGY DEMANDED
KFC is demanding 1.5 million yuan (US$242,000) and an apology from each of the three companies that operated accounts on the popular mobile phone app WeChat.
It is also seeking an immediate stop to their infringements.
Shanghai Xuhui District People’s Court has accepted the case, according to a press officer who would only give her surname, Wu.
KFC China chief executive Qu Cuirong (屈翠容) said in a statement that it was hard for companies to protect their brands against rumors because of the difficulties in collecting evidence.
“However, stepped-up efforts by the government in recent years to purify the online environment, as well as some judicial interpretations, have offered us confidence and weapons,” Qu said.
THREE FIRMS
The companies being sued were named as Shanxi Weilukuang Technology Co Ltd, Taiyuan Zero Point Technology Co and Yingchenanzhi Success and Culture Communication Ltd in Shenzhen.
Authorities launched a renewed campaign two years ago to clean up what they called online rumors, negativity and unruliness.
Critics say the campaign was largely aimed at suppressing criticism of the ruling Chinese Communist Party. Commentaries in state media have argued that a cleanup was needed.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday said its materials management head, Vanessa Lee (李文如), had tendered her resignation for personal reasons. The personnel adjustment takes effect tomorrow, TSMC said in a statement. The latest development came one month after Lee reportedly took leave from the middle of last month. Cliff Hou (侯永清), senior vice president and deputy cochief operating officer, is to concurrently take on the role of head of the materials management division, which has been under his supervision, TSMC said. Lee, who joined TSMC in 2022, was appointed senior director of materials management and
Nvidia Corp CEO Jensen Huang (黃仁勳) on Thursday met with US President Donald Trump at the White House, days before a planned trip to China by the head of the world’s most valuable chipmaker, people familiar with the matter said. Details of what the two men discussed were not immediately available, and the people familiar with the meeting declined to elaborate on the agenda. Spokespeople for the White House had no immediate comment. Nvidia declined to comment. Nvidia’s CEO has been vocal about the need for US companies to access the world’s largest semiconductor market and is a frequent visitor to China.
MAJOR CONTRIBUTOR: Revenue from AI servers made up more than 50 percent of Wistron’s total server revenue in the second quarter, the company said Wistron Corp (緯創) on Tuesday reported a 135.6 percent year-on-year surge in revenue for last month, driven by strong demand for artificial intelligence (AI) servers, with the momentum expected to extend into the third quarter. Revenue last month reached NT$209.18 billion (US$7.2 billion), a record high for June, bringing second-quarter revenue to NT$551.29 billion, a 129.47 percent annual increase, the company said. Revenue in the first half of the year totaled NT$897.77 billion, up 87.36 percent from a year earlier and also a record high for the period, it said. The company remains cautiously optimistic about AI server shipments in the third quarter,
Hypermarket chain Carrefour Taiwan and upscale supermarket chain Mia C’bon on Saturday announced the suspension of their partnership with Jkopay Co (街口支付), one of Taiwan’s largest digital payment providers, amid a lawsuit involving its parent company. Carrefour and Mia C’bon said they would notify customers once Jkopay services are reinstated. The two retailers joined an array of other firms in suspending their partnerships with Jkopay. On Friday night, popular beverage chain TP Tea (茶湯會) also suspended its use of the platform, urging customers to opt for alternative payment methods. Another drinks brand, Guiji (龜記), on Friday said that it is up to individual
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