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Yihaodian ordered to pay compensation to consumers
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YIHAODIAN, an online retailer in China, was yesterday ordered by the Pudong New Area People’s Court to pay compensation to six clients for failing to deliver the gold bars they had purchased on the e-business platform.
Lu Zhigang and his wife ordered 18,700 yuan of gold bars of different types from the Precious Metals Flagship Store of Bank of China on Yihaodian. They paid all the money on January 3 and January 4.
But the gold bars, which should have been delivered one or two days later, never reached them. Instead they received a phone call from the e-business platform on January 8, saying that all the orders had been canceled as the sales promotion was a mistake caused by the system. It offered to give them a 100-yuan coupon to place a new order.
Believing it was a business fraud, the couple dragged the Shanghai-based online retailer to court. They demanded the retailer give them the precious metals, or pay 70,128.74 yuan — the difference between the deal and the market value.
They also said if the court judged that their contract was not valid when their orders were placed, they would like to be paid 5,512.50 yuan by Yihaodian for contract liability.
System fault
Yihaodian claimed the sales promotion was a mistake which happened while it was upgrading its system.
Wrong prices and wrong sales information showed up in August last year. Last year’s disputes were settled between the bank and consumers out of court.
Yihaodian also argued that it was a business platform, not a direct seller, hence it could not shoulder the responsibility. Any contract is not fully established until the customers received a confirmation e-mail, telling them that the purchased products had been shipped. It offered to raise the compensation to 200 yuan of coupons for each order.
The court said the flagship store of Bank of China violated principles of good faith and was liable for contracting fault.
As Yihaodian refused to provide address and other effective contact information, it should pay compensations to consumers, the court said.
Yihaodian did not provide any evidence to prove that the sales information was caused by system malfunction.
But the court rejected the couple’s allegation of fraud and ordered Yihaodian to pay them 4,461 yuan for direct economic losses, including the interest of the paid money, the expected profit it may bring them in other investment opportunities and other money they spent to safeguard their right.
Another five plaintiffs, who had bought the “discounted” gold bars, also won compensations between 2,196 yuan and 4,461 yuan.
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