Chinese police have detained 37 employees of Wal-Mart (WMT.NYSE) stores in the southwestern city of Chongqing that have been accused of defrauding consumers by mislabeling ordinary pork as an organic product, the Wall Street Journal reported. According to state media, authorities have arrested two senior employees, the vice president and the fresh-food director of the Jiulong Wal-Mart outlet in Chongqing. In response to official orders, Wal-Mart has shut down for 15 days all of its Wal-Mart stores and two Trust Mart stores in Chongqing and will pay a US$575,000 fine. In the past, Beijing’s consumer protection campaigns have focused on safety issues, but Qiu Jianguo, director of consumer complaints at the China Consumer Association said the scope is being expanded to financial harm. Meanwhile, some political analysts say the Chongqing probe is part of a wider trend in which officials seek to attach their names to populist issues in preparation for next year’s leadership transition. Wal-Mart reported US$7.5 billion in revenue last year from 328 China stores, and has since expanded that number to 350.
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