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Chinese companies fined over KFC reputation infringement

Staff writer ▼ | February 4, 2016
A court in Shanghai said it had ordered three companies to pay KFC 600,000 yuan ($91,600) for infringing the U.S. fast-food chain's reputation.
KFC China
Spreading rumors   A court in Shanghai ordered:
The three companies were sued by KFC in May for operating ten public accounts on WeChat, the popular messaging app, spreading rumors against the brand's reputation.

Among the posts with over 100,000 views is one saying that "my friend's father, who is a high ranking bank official, visited KFC's farm in China, said that every chicken there had six wings and eight legs..."

KFC believed the posts had deliberately scared the public and had caused damage to the brand's image. The company had initially claimed 3.5 million yuan compensation.

The Shanghai Xuhui District People's Court has ruled that the three companies had indeed infringed KFC's reputation and had directly led to economic losses.

The court also ordered the three defendants to make a public apology to KFC on major Chinese web portals.