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Websites balk at paying refunds
06.11.2019

    Three websites refused to refund consumers who sought to take money back from their recharged accounts, while another 17 agreed to a refund following negotiations, the Shanghai Consumer Council announced yesterday.

    The council conducted a four-month investigation, posing as common consumers to check the recharge consumption performances of 31 Internet platforms covering online shopping, tourism, life services and online education.

    Officials recharged accounts and asked for withdrawal later during the trial.

    There is a vacuum with regards to regulation in this area, exposing consumers to potential financial risks, according to Tang Jiansheng, deputy secretary-general of the council.

    Among the 31 websites, only 10 offered a self-helping refund for consumers, the council noted.

    Twelve sites, such as KFC, Pizza Hut, Amazon.com, freight service provider Huolala, Chinese ride-hailing platform Ucar and online retailer FruitDay, provided refunds after consumers’ “negotiations” with after-sales personnel, while another five, including Burger King, Hema Fresh and 21Cake, promised a refund only when the council intervened. Lyfen, a domestic retailer of snacks, charged 2-yuan (30 US cents) commission for the refund.

    Three websites, FreshFresh.com, an e-commerce platform of fresh food; delivery platform Dada; and Womai.com, owned by China’s top food processor and trader COFCO, simply refused to provide a refund, according to the council.

    “The practice infringes on consumers’ rights to know, to fair trade and to demand for compensation,” said Tao Ailian, secretary-general of the council. “In an Internet era, the protection of consumers’ fund is becoming a problem.

    “It is easy for consumers to recharge their accounts without any obstacle, so it should be the same, without any threshold, when they want to withdraw the money,” she noted.

    The investigation also covered 28 websites using non-gaming virtual currency for recharge. Their services ranged from English study and reading to video and entertainment and consumers pay for the virtual currency, which is saved in their account.

    Among them, 15 either refused to pay back or set very harsh conditions for a refund, the council revealed.

    These included the reading platform of online video channel iQiyi.com, QQ reading, short video sharing app Douyin, also known as TikTok, and video-sharing site Meipai.

    The remaining sites, such as Q&A website Zhihu.com and Tmall reading platform, promised a refund only after the intervention of the council.



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