UPDATE 1-China fines online education firms for misleading consumers
Adds companies' response, background
BEIJING, May 10 (Reuters) - China's market regulator said on Monday it fined online education startups Yuanfudao and Zuoyebang 2.5 million yuan ($388,754) each for misleading consumers.
Alibaba-backed BABA.N online tutor Zuoyebang was found to be using false advertising while Tencent-backed 0700.HK education technology firm Yuanfudao was found to be using misleading pricing, the regulator said in a statement.
Yuanfudao said in a statement that it has conducted a self-review on its products and has "rectified related misleading tags." Zuoyebang said it "sincerely accepted the administrative penalty."
Chinese regulators have stepped up efforts to rein in education companies' excessive advertising and false pricing.
Last month, Beijing local regulators fined four education agencies, including GSX GSX.N and Koolearn 1797.HK, each 500,000 yuan ($77,313.21) for misleading customers with false advertising and pricing.nL4N2MI03E
($1 = 6.4308 Chinese yuan)
(Reporting by Yingzhi Yang and Tony Munroe in Beijing; Editing by Kim Coghill and Sam Holmes)
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