Nike put in hot seat for false marketing by Chinese TV show

HONG KONG (March 16): Nike Inc. was chided by a consumer-protection show on state-run television in China, giving a black eye to the athletic brand in its second-biggest market.

The annual program, a “name-and-shame” show that aims to uncover abuses by companies, said Nike had falsely advertised basketball shoes. The sporting-goods giant claimed the sneakers had Zoom Air sole cushions inside when they did not, according to the broadcast.

The unwelcome publicity comes at a time when Nike needs China more than ever for growth. The company is facing heavier competition in the US, weighing on its plans to reach US$50 billion in revenue by 2020. Sales in China, in contrast, have been soaring: Excluding currency effects, they jumped 17 percent in the most recently reported quarter.

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