Toshiba Faces Media Fire in China

A Chinese court is expected to decide this week whether to allow a lawsuit alleging Japanese computer giant Toshiba Corp discriminates against Chinese buyers, a spokeswoman for Toshiba said on Monday in Beijing.

Toshiba has been assailed in the state media for compensating US consumers for a possible defect in its laptops, but not Chinese customers.

In media reports and Internet chatrooms the rhetoric has turned jingoistic.

The flare-up began this month when reports began circulating about Toshiba's settlement last year of a US lawsuit alleging a defect in the floppy disk controllers of Toshiba laptops that could potentially corrupt data on floppy disks.

Under the $1.05 billion out-of-court settlement, Toshiba agreed to incorporate new floppy disk controllers in personal computers sold in the United States and to provide eligible consumers with coupons ranging from $100 to $225.

It has not offered payments to any customers outside the United States, including Japan and China.

Toshiba has said its decision to settle in the United States is not an admission of a defect with the controller, but has said that data on floppy disks could be altered or lost in rare cases.

It has made a free software patch available over the Internet which it says prevents the problem.

LAWSUIT AND BOYCOTTS

Chinese media said the company is treating Chinese as second-class customers by not offering compensation.

Toshiba Vice-president Masaichi Koga travelled to Beijing last week to explain Toshiba's position at a news conference, but was bombarded with angrily worded statements from reporters.

Toshiba users Zhu Guoqiang, Wu Jingsong and Yang Jinping last Thursday filed suit in Beijing seeking 80,000 yuan ($9,665) in compensation and an apology from Toshiba for failing to inform Chinese users of the potential problem.

"Last week they filed suit, but we must wait seven days until we know whether the court has accepted the case," said a spokeswoman for Toshiba at Prap Beijing Public Relations Consultants Inc.

More than 100 people in Liaoning province were also planning to sue the company, the Liaoshen Evening Newspaper said.



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