Core Viewpoint - Usmile, a well-known oral care brand, has been fined 250,000 yuan for commercial defamation against Laifen, a competitor, due to misleading information disseminated through social media [1][2]. Group 1: Incident Details - Usmile's parent company, Guangzhou Xingji Yuedong Co., Ltd., was penalized by the Tianhe District Market Supervision Administration of Guangzhou for spreading misleading information about Laifen's electric toothbrushes [2][3]. - The misleading content included claims that Laifen's toothbrush heads were "all barbs" and "you dare to use this?" during a live broadcast on Douyin [2][3]. - The regulatory body determined that Usmile's actions violated Article 11 of the Anti-Unfair Competition Law of the People's Republic of China, which prohibits the fabrication and dissemination of false or misleading information that harms a competitor's commercial reputation [2][3]. Group 2: Company Background - Usmile was established in 2016, initially focusing on electric toothbrushes, and has since expanded its product line to include oral irrigators, toothpaste, and brush head accessories [4][6]. - Laifen Technology, founded in 2019, entered the electric toothbrush market in October 2023, having previously focused on hair dryers and shavers [6]. - Laifen reported revenues of 1.3 billion yuan in 2021 and 1.567 billion yuan in 2022, but is projected to incur a net loss of 80 million yuan for its toothbrush product line in 2024 [6].

Core Viewpoint - Usmile, a well-known oral care brand, has been fined 250,000 yuan for spreading misleading information that disparaged its competitor, Laifen Technology, in violation of China's Anti-Unfair Competition Law [1][2][3]. Company Overview - Usmile was founded in 2016 and initially focused on electric toothbrushes, later expanding its product line to include water flossers, toothpaste, and brush heads [4]. - Laifen Technology, established in 2019, initially developed hair dryers and only entered the electric toothbrush market in October 2023. The company also offers shavers and other products [6]. Financial Performance - Laifen Technology reported revenues of 130 million yuan in 2021 and 1.567 billion yuan in 2022. However, it is projected to incur a net loss of 80 million yuan for its toothbrush product line in 2024 [6]. - Usmile electric toothbrushes are priced between 399 and 798 yuan, while Laifen's electric toothbrushes range from 377 to 768 yuan [6]. Regulatory Action - The Guangzhou Tianhe District Market Supervision Administration determined that Usmile's actions constituted commercial defamation, leading to a fine of 250,000 yuan on July 28 [2][3].