Copycat moving company busted after price gauging

Credit: Ti Gong

Seven people have been arrested for allegedly running an illegal moving business that coerced its clients to pay undue fees for its services, Shanghai police said on Monday.

One of the victims was a man surnamed Zhang, who reported the case at the end of June to police in Changning District.

Zhang searched for moving services on the Internet and got into contact with someone who seemed to be from the famous local moving company "Gongxing," without realizing that it was all a hoax, police said.

The suspects paid search engines money so that their illegal business, bearing the same name "Gongxing," appeared on the top of the list of search results, police revealed.

Zhang struck a deal with the person to pay 2,000 yuan (US$293) for the service, but was told to cough up 10,000 yuan after the staff finished the moving. He said he had to comply for fear of retaliation, despite knowing it was not right.

The suspects were rounded up from late July to early August.

They have confessed and said they targeted elderly people, women and students.