On June 12 Taobao Flash Sale said on Weibo that Sichuan public security
authorities uncovered a case in which a company hired Chengdu Xiaoben Culture
Media Co. and other agencies to fabricate and disseminate false, defamatory
online rumors about peer firms. Sichuan police said five individuals received
administrative penalties and that evidence of the company’s unfair-competition
conduct has been forwarded to market regulators. Taobao Flash Sale said the
campaign systematically targeted Taobao Flash Sale and JD Waimai.