"Zhongyuan Petrochemical" Under Investigation! Sinopec and CNPC Have Issued Multiple "Fraud Alert" Notices

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(Source: 财闻)

          According to reports, the Market Regulation Administration of Luquan District has filed a case for investigation. It will handle the matter in accordance with the law and relevant regulations based on the results of the investigation. The负责人 of the gas station has already received notice and has started rectifying and dismantling the relevant signage.

According to People’s Daily, recently, a gas station in Luquan District, Shijiazhuang, branded “Zhongyuan Shihua,” whose logo is similar to “Sinopec,” has drawn public attention.

According to reports, the Market Regulation Administration of Luquan District has filed a case for investigation. It will handle the matter in accordance with the law and relevant regulations based on the results of the investigation. The gas station manager has already received notice and has started rectifying and dismantling the relevant signage.

The “Yuan” in this “Zhongyuan Shihua” refers to “Garden,” which looks very similar to the Chinese character “Guo,” and the gas station’s exterior design and decor, as well as the abbreviations in English letters, are highly similar to “Sinopec.”

In response to netizens’ suspicions that it is a “counterfeit gas station,” the station manager, Mr. Yang, told a reporter that the gas station has a legitimate business license and was registered with the industry and commerce authorities in 2010. Its full name is “Zhongyuan Shihua Baichigang Gas Station, Luquan District, Shijiazhuang.”

Regarding the suspicion of “fakes,” Mr. Yang responded that the name and logo were not deliberately modeled after others. The English abbreviation SNOPEC differs from Sinopec’s SINOPEC by only one “I,” and it is just that “a few characters were pasted on—there’s nothing deliberate about it.”

China Petrochemical Corporation (600028.SH) and China National Petroleum Corporation (601857.SH) have repeatedly issued “anti-fake” reminders:

Playbook 1: Playing with characters in the station name.

This is the most common tactic used by counterfeit gas stations. By changing one or two characters in the station name, from a glance it looks no different from a legitimate Sinopec gas station, thereby gaining the trust of drivers.

Playbook 2: Imitating the appearance design of counterfeit gas stations at close range.

The shape, color, and content are very similar to those of legitimate Sinopec gas stations. Everyone must be sure to check the information on the brand name pillars before entering the station.

Playbook 3: Imitating fuel dispensers covertly.

Some counterfeit gas stations even imitate the fuel dispensers. At first glance, people may think it is the original logo of Sinopec, but in fact it is industrial petrochemicals.

Playbook 4: Convenience store design resembles that of counterfeit gas stations.

The convenience store name is “Kuaijie,” which differs by only one character from Sinopec’s Easyjoy convenience store. In addition, the color scheme, English text, and signage are basically indistinguishable.

With a valid business license and administrative approval procedures, can they “catch a ride” on commercial signage?

Zhao Zhanling, a part-time research fellow at the Intellectual Property Center of China University of Political Science and Law, said that administrative approval qualifications and trademark infringement are two completely different legal concepts. The actions mentioned above may violate the relevant provisions in the Anti–Unfair Competition Law that “operators shall not engage in confusion-inducing conduct that causes people to mistakenly believe they are dealing with another party’s goods or that there is a specific relationship with another party.”

Zhao Zhanling emphasized that for such allegedly infringing conduct, the law provides clear pathways for rights protection and supervision. Cases can be handled by market supervision and administration departments, or the infringed-upon company can sue in court.

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