Chinese internet users are finding out the hard way that the convenience of shopping and using services online comes at their own expense.
According to a government consumer report, Chinese e-commerce platforms and internet services are taking advantage of their clients. who are complaining about the mistreatment en masse.
The first of its kind, the “Service Contract Report for E-Commerce Users” singled out nine internet companies for committing multiple violations over user registrations, agreements and transactions.
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Restaurant peer reviewer Dazhong Dianping was named as the biggest violator, followed closely by car-service provider Didi Chuxing, and ticket retailer Ctrip.
Other online companies noted for abusing their clients are Shenzhou Car Rental (China Auto Rental); group retailers Meituan and Baidu Nuomi; and travel retailers CTrip, Tongcheng, Fliggy (Feizhu), and Qunar.
China’s Department for E-Commerce Complaints and Consumer Rights said many consumer complaints are rooted in the fact that these platforms create “traps” to ensnare its clients while also using unfair user contracts to absolve them from any responsibility.
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As pointed out by the department, a user contract with Meituan specifies that the company is “not liable for any loss or damage suffered by the user,” while the list of things that Shenzhou Car Rental won’t be legally responsible for include “anything dealing with computer problems dating back to the year 2000.”
Another problem for Chinese consumers is not knowing if what they are buying is the real thing.
As seen in its own terms of service, Ctrip does not actually endorse fo the authenticity of the travel products listed for sale on its website. Instead, Ctrip maintains that the travel products are “voluntarily authenticated to be accurate and legitimate by these third-party themselves.”
The department describes these contracts as “unclear, tedious to read, and aren’t easily understandable for the user.”
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Additionally, these internet companies are engaging in unethical and poor business practices as detailed by numerous consumer complaints .
Last year, 15 percent of all consumer complaints in China were directed at Chinese e-commerce platforms.
The majority of these complaints were directed at Baidu Nuomi for two consecutive years, making up 26 percent of complaints in 2016. Consumers complained that Nuomi group buyer vouchers were not valid, and that making refunds was difficult. At the same time, travel retailers like Qunar, Ctrip, Tongcheng, and Yilong were criticized for the high service charges involved for refunding tickets.
Despite the convenience, buying online in China has been a problematic experience for consumers. In 2015, Xinhua reported that 40 percent of all goods purchased online were either defective or counterfeit, while a Shanghai government watchdog found that 30 percent of online goods failed to pass quality controls.
The published report coincides with global consumer rights day and will culminate with a “gala” to be televised on CCTV’s 315 program, an influential television show that has shamed numerous brands into making amends for Chinese consumers but which recently came under fire after incorrectly claiming that Japanese lifestyle store Muji was selling radioactively tainted products.
Its unclear if these online companies will be compelled to amend their restrictive user agreements. So although Chinese consumers may be always looking for the cheapest deals, it remains true that it always pays to read the fine print.
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Twitter: @Sinopath
Images: Yibada