When a British newspaper reported  last week that "Harry Potter's" Hermoine, actress Emma Watson, had just landed a multimillion-dollar fragrance deal with Chanel, the corporate offices refused to let their PR reps issue a statement that the report was false.

As a result, the false report spread like wildfire across the Internet. Just Google "Emma Watson" and "Chanel" and see the results.

So why didn't Chanel correct the original erroneous report and stop the madness?

"We're not allowed to make statements when the reports are not true," a New York-based Chanel spokesman explained this morning.

Huh?

"It's the company's policy not to make a statement if the report is not true," she continued. "For instance, when Audrey Tautou's contract was leaked to the press, we issued a statement because it was true, she was being put under contract."

Even now, Chanel will NOT issue a written denial. "We are only allowed to speak to reporters about this. We cannot widely release a statement that the report isn't true."

Even the Chanel spokesman's name may not be used due to yet another strange set of corporate rules. "I cannot be quoted. Just say company spokesman," she explained.

Oh-Kay.

The Chanel rep admitted that the strange technique of non-addressal of incorrect items may not be -- in hindsight -- the wisest move.

"The story did take on a life of its own," the rep admitted. "It was everywhere. And I can understand why everyone thought it was true because we do often work with Emma Watson, dressing her for events. And she's adorable."

So, unless a report on a Chanel fragrance deal is true, there will be no double-C-stamped statement. If the report is false, no statement. Got that?