It was learned from the official website of the State Administration for Market Regulation that today, the State Administration for Market Regulation made an administrative penalty decision on Vipshop (China) Co., Ltd. in accordance with the law, with a penalty amount of 3 million yuan.

Unfair competition means that operators and other relevant market participants use methods that violate generally accepted business ethics such as fairness and good faith to gain trading opportunities or destroy the competitive advantages of others, harming consumers and other businesses. The legitimate rights and interests of the perpetrators and disrupt the social and economic order.

The consequences are: 1. Damage to consumer rights. Merchants may be blinded by profit and exaggerate the efficacy of products through false advertising to attract consumers to consume. This infringes on consumers' legitimate rights and interests. If product quality control is not strict enough, it may seriously infringe on consumers' personal safety. There are also some opportunistic merchants who use deceptive prize sales to get consumers to make purchases, which deceives consumers on another level and guides them to consume; 2. Damage the normal operations and legitimate rights and interests of other operators and make law-abiding operations The victim suffered both material and mental damage. For example, by counterfeiting a competitor's registered trademark and discrediting the competitor, consumers will have a bad impression of the competitor, thereby reducing their purchases and adding more customers to themselves, which infringes upon the competitor's legitimate rights and interests; 3. Damage other operators and cause infringement of other merchants. For example, monopolizing a certain material creates a market monopoly, with one company dominating the market, which endangers the market order of fair competition. It needs to be controlled through macro-control, otherwise it will not be conducive to the good development of the market; 4. Hinder technological progress and the development of social productivity. If unfair competition in the market cannot be controlled, businesses will use various means to achieve profits instead of improving their product competitiveness, which will plunge the market into a stage of technological obstacles and affect the improvement of social productivity; 5. Not Fair competition behavior may also have a negative impact on my country's opening-up policy and seriously damage national interests. Some merchants are engaged in cross-border cooperation or foreign trade of food. If there are major problems in these products, it will not only be damaged by the merchants, but also our national reputation, which will affect our country's external sales to a certain extent. The good ones may not be praised, but the bad ones will definitely be publicized. Don't be greedy for petty profits and cause harm to the Chinese market.

Legitimate competition can generate pressure and motivation. For the sake of their own development, it is inevitable for businesses to compete with each other, but they must still pay attention to market rules of honesty and credibility and recognized business ethics to create a benign and healthy market environment. The poor industry competition environment and additional meaningless costs ultimately end up paying the bill for innocent consumers.