Ehay.com.cn, a Beijing-based shopping website whose name sounds similar to eBay (EBAY), is accused of cheating consumers by not delivering purchased goods.

Beijing's Haidian District Consumer's Association says a consumer surnamed Xu was attracted to the website because many of the electronics products on Ehay are discounted by more than 50%.

Xu bought a mobile handset from the website, but he did not receive the product after he paid the money.

After the Consumer's Association conducted an investigation, the website turns out to be unlicensed and it does not reside at the address in Beijing that it claims to have located its office.

Beijing's Haidian District Consumer's Association says that initially Ehay said it would reimburse Xu his money, but then it failed to deliver the funds and all contact with people running the site has been lost.

Local police are getting involved in the case now and are asking for more information from the public about any other fraudulent purchases on Ehay.