Mercedes-Benz's auto finance named by Chinese banking regulator for infringement of consumer rights
Mercedes-Benz in Shanghai, China. /CFP

Mercedes-Benz in Shanghai, China. /CFP

Mercedes-Benz's auto finance unit was named by the China Banking and Insurance Regulatory Commission (CBIRC) for infringement of consumers' rights, according to a briefing (link in Chinese) issued on Thursday on the Chinese banking regulator's website.

The auto brand's financial services violated consumers' legitimate rights and interests by non-compliant disclosure of service fees on its official website and non-compliant use of consumers' information, the regulator's inspections showed.

The auto finance unit was also found not clarifying provider of loan products on marketing materials, and inadequately implementing self-regulation on consumer rights protection, according to the briefing.

"The actions of Mercedes-Benz's auto finance unit violated consumers' rights to information and independent choice, and posed potential risks to consumer information security," the briefing said, adding that the company rectified the issues in accordance with regulatory requirements.

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