Customers eating at a KFC restaurant at Wangfujing shopping mall in Beijing on August 10, 2014. [Photo: Asianewsphoto]

Fast food giant KFC has filed a law suit against three Chinese companies for spreading "rumors" alleging that the company is using Genetically Modified chickens. KFC is claiming 3.5 million yuan (564,000 US dollars) in compensation.

Ten Wechat accounts involved are run by the three companies, according to KFC.

Qu Cuirong, president of KFC's business in China said the company has been plagued for years by rumours that they are using sick chickens.

"Rumours about KFC using chickens with six wings and eight legs havve been spread among the public through various means such as via email, online discussion forums and social media like Weibo and Wechat. The recent outbreak occurred in the first half of the year. Some gruesome pictures which were obviously photoshopped with sensational titles went viral on Wechat. " Qu added.

Qu said the outburst of rumours not only misled consumers but also harmed the brand itself.

Qu said these rumours are absolutely groundless.

"Today's biotechnology is far from breeding chickens with six wings and eight legs." Qu explained.

Yum, the parent company of KFC and other restaurant brands including Pizza Hut and Taco Bell, is trying to restore its lost market share in China.