Luckin fined for unfair competition
The State Administration for Market Regulation fined five companies, including Luckin Coffee China Co Ltd, two million yuan ($297,000) each for unfair competition.
The administration issued an administrative penalty decision on Monday stating Luckin Coffee China and Luckin Coffee Beijing, between April and Dec of last year, collaborated with multiple third-party companies to fabricate 123 million false coffee orders.
Luckin Coffee had hired individuals and enterprises to make orders, adding false income and forging banking transaction records, which deceived and misled consumers, according to the administration.
The administration has ordered the coffee chain to cease its illegal activities.