Arsenal’s partnership with BYD involved in potential advertising fraud

On the morning of July 12, Chinese automobile brand BYD announced via the brand’s Sina Weibo account that they had become the victim of advertising fraud made by a woman named Li Juan who conducted a series of advertising activities in the name of  Shanghai Yuhong a company who pretended to represent BYD. It was understood that Li Juan used fake stamps and similar BYD company email address to work with various advertising agencies and conduct advertising agreements. 

The partnership with Arsenal FC signed in April 2018 was mentioned specifically as one of the advertising activities in this fraudulent scam. 

BYD reports that they have contacted the police and suggested relevant advertising agencies contact the police to support their investigation. 

However, the news was complicated by a disclosure by an agency in Shanghai. On the evening of July 12, an advertising agency, JingzhiPR, in Shanghai published an article via its WeChat account, accusing BYD of lying about the fraud. JingzhiPR was one of the main agencies that provided services to these BYD campaigns. They state that it is unlikely that BYD were not aware of these BYD advertising activities over three years, with many of the advertising/marketing campaigns and activities needing approval/signatures from the BYD headquarters to be implemented. 

According to the article by JingzhiPR, it is likely to affect at least 25 advertising agencies in China who have provided services to BYD advertising campaigns in the past three years, with an estimated accumulated advertising cost, as high as CNY1.1bn. 

Arsenal FC announced via Sina Weibo on July 13 that they had been informed by BYD of the news and were “investigating the situation and discussing it with senior level BYD representatives who were involved in the launch of the partnership”. They “will make no further comments on this matter.” 

BYD statement:

Arsenal FC statement: 

References: BYD Weibo, Arsenal Weibo, JingzhiPR article 

Proofread by Raymond Fitzpatrick