An increasing number of online sellers display highly attractive information regarding such matters as product functions, sales figures and substantial discounts in large type on prominent parts of sales pages, while placing other important information like supplementary explanations, usage restrictions and liability disclaimers in less obvious places in small type.

The positive expectations generated by the large type promotions starkly contrast to the restrictive information hidden in small type, leading to subsequent consumption disputes.

The Beijing Internet Court (BIC) recently adjudicated a consumer right protection case arising from this type of promotional practice.

Case summary

The plaintiff Li bought a stereo priced at 4,434 yuan ($629.7) from the defendant's online shop. Mention of a 360-degree sound function, a noteworthy function of the product, was prominently displayed in the product name and promotional images. But after receiving the stereo, the plaintiff found that the option of this function was unavailable.

The plaintiff checked the sales page and consulted customer service, and then learned that the 360-degree sound function could only be activated by adding two rear surround speakers. The plaintiff believed that the defendant's description constituted fraud and filed a lawsuit requesting triple compensation from the defendant.

The defendant argued that it had clearly indicated in the promotional images and product details that the 360-degree sound function requested optional rear surround speakers and had explained that different functions necessitated different speakers. It further stated that multiple selectable stereo sets were available for purchase, therefore there was no misleading suggesting that all sets offered the same function. The defendant claimed that the plaintiff had chosen a stereo without speakers and should bear the resulting consequences.

After hearing the case, the BIC determined that the plaintiff bought the product from the defendant's shop, thereby the two parties formed an online sales contract. After reviewing the transaction snapshot, the court found that although the defendant had provided notices indicating that the 360-degree sound function required optional rear surround speakers, such information was presented either in small print marked with asterisks or in vague terms. In contrast, the product name and main promotional images prominently displayed the product as having a 360-degree sound function.

According to Article 17 of the Electronic Commerce Law of the People's Republic of China, e-commerce operators shall fully, faithfully and accurately disclose in a timely manner information on their goods or services to safeguard consumers' right to be informed and to choose.

In this case, the defendant failed to fulfill its statutory obligation to fully, truthfully and accurately disclose product information, which resulted in the plaintiff unable to achieve the intended purpose of purchase. Therefore, the plaintiff was entitled to dismiss the contract and request a refund.

However, given that the defendant did indeed show many notifications on the sales page and set various selectable options, the existing evidence was insufficient to establish that the defendant had the subjective intent to commit fraud. As such, the court did not support the plaintiff's claim for triple compensation.

Details of the ruling

The court ordered the defendant to refund the purchase price to the plaintiff, and the plaintiff was ordered to return the stereo. The plaintiff's other claims were dismissed. The judgment has taken effect.

Tips from the judge

In recent years, an increasing number of sellers have adopted promotional methods that emphasize discounts and product functions in large type while concealing key information like restrictions and usage conditions in small type.

Consumers are often misled by large-type information and may fail to notice the hidden conditions, leading to consumption disputes when the actual situation does not align with the consumers' expectations.

Pursuant to Article 20 of the Law of the People's Republic of China on the Protection of Consumer Rights and Interests and Article 17 of the Electronic Commerce Law of the People's Republic of China, business operators shall fully and faithfully disclose the information on their goods or services to safeguard consumers' rights to be informed and to choose.

If sellers deliberately conceal key product information in small print to evade their obligations, thereby causing consumers to be unable to realize their purchasing purposes they shall bear corresponding legal liability depending on the seriousness of the circumstances.