The highest compensation for fake and shoddy products is three times, and 500 yuan is less than three times that of 500 yuan. According to the law, if an operator commits fraud in providing goods or services, he needs to pay double indemnity, that is, three times the price of goods purchased by consumers or the cost of receiving services; If the amount of additional compensation is less than that of 500 yuan, it shall be 500 yuan.

Legal basis:

Article 55 of the Consumer Protection Law

If an operator commits fraud in providing goods or services, it shall increase the compensation for the losses suffered by consumers as required, and the compensation amount shall be three times the price of the goods purchased by consumers or the cost of receiving services; If the amount of additional compensation is less than that of 500 yuan, it shall be 500 yuan. Where there are other provisions in the law, those provisions shall prevail. Where a business operator knowingly provides goods or services to consumers, causing death or serious damage to the health of consumers or other victims, the victims have the right to demand compensation from the business operator in accordance with the provisions of laws and regulations such as Articles 49 and 51 of this Law, and have the right to demand punitive damages less than twice.