In China, customers are able to receive subsidies on certain appliances such as televisions and washing machines - it's a government initiative to encourage spending. But one electric appliance retailer has apologized for taking advantage of this system.

Gome has said it will conduct checks after media reports of improper conduct in its trade-in program, which allows customers to trade-up used appliances for new ones. Staff at several GOME outlets in Tianjin and Beijing were allegedly selling receipts to people so they would qualify for government subsidies of up to 400 yuan as a way of attracting customers and boosting in-store sales.

The Guangzhou-based retailer has apologized to customers, and pledged to compensate for any related losses.

He Xiangyang, Gome Deputy Director said "We wish to apologize to our customers. We will also investigate allegations that some of our salespeople have pocketed freebies that were meant for customers, and penalize those who were involved. We will also compensate customers' losses caused by our mistakes."

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