Dali orders suspension of car rental company amid scandals

Authorities in Dali, Yunnan province, have ordered a local car rental company involved in luxury car rental scandals to suspend operations for rectification.

On Tuesday, media reports revealed a gray industry chain in Dali, where a seemingly budget-friendly luxury car rental service was a front for a scheme involving "low-price lures, forced insurance sales, and malicious claims", which entangled tourists in compensation disputes and even exposed them to personal safety risks.

According to a statement released by the city's transportation bureau on the same day, the issues reported by the media have been largely verified. The bureau has ordered Dali Mingshi Tourism Service Co, the company involved, to immediately halt operations for rectification. An official investigation is now underway.

It has also taken a proactive approach by summoning all car rental business entities in the city and launching a special rectification campaign within the industry, focusing on major issues in the small and micro passenger car rental sector, such as operating with unregistered vehicles and non-compliant contracts.

The bureau aims to improve the business environment of the car rental market by encouraging companies to operate legally and ethically so as to protect consumer rights and interests, according to the statement.