Oriental Selection sells rotten peaches; food safety must be strictly enforced.
[4] Compiled from: Red Star News
Case review
Recently, New Oriental's livestreaming e-commerce platform "East Buy" has seen a surge in popularity thanks to its hosts' bilingual product promotion, repeatedly trending on social media. According to people familiar with the matter, since the "East Buy" livestreaming room went viral, the business WeChat "has been flooded with friend requests, with hundreds pending."
However, a Beijing resident surnamed Liu (a pseudonym) told Red Star News that on June 9, he placed an order for a 4.5 to 5-jin pack of Shaanxi honey peaches in the "East Buy" livestreaming room. After signing for the express delivery, Liu found that about a quarter of the honey peaches had become moldy and hairy.
After complaining to customer service, the merchant quickly issued a full refund to Xiao Liu, but Xiao Liu still had doubts: given how badly the peaches were damaged, how were they ever "hand-picked"?
[5] Food Safety Law
Article 148
If a consumer suffers damage due to food that does not meet food safety standards, they may claim compensation for losses from the operator or the producer. The producer or operator that receives the consumer's compensation claim shall implement the first-responsibility system, pay compensation first, and shall not shirk responsibility. If the producer is liable, the operator has the right to recover from the producer after compensation; if the operator is liable, the producer has the right to recover from the operator after compensation. If food that does not meet food safety standards is produced, or if food that is known not to meet food safety standards is operated, the consumer may, in addition to claiming compensation for losses, also demand from the producer or operator a punitive payment of ten times the price or three times the losses; if the additional compensation is less than one thousand yuan, it shall be one thousand yuan. However, this does not apply if the food's label or instructions contain defects that do not affect food safety and do not mislead consumers.
Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Civil Disputes over Food Safety (I)
Article 2
If food sold by an e-commerce platform operator in the form of self-operated business, or food sold through actual self-operated business even if not marked as such, does not meet food safety standards, and the consumer claims that the e-commerce platform operator shall bear compensation liability as a food operator in accordance with Article 148 of the Food Safety Law, the people's court shall support such claim.
If an e-commerce platform operator is not actually engaged in self-operated business, but its markings or other indications are sufficient to mislead consumers into believing that the food is self-operated by the e-commerce platform operator, and the consumer claims that the e-commerce platform operator shall bear compensation liability as a food operator in accordance with Article 148 of the Food Safety Law, the people's court shall support such claim.
[1] The author's perspective
Fresh fruit and perishable products have traditionally fallen outside the scope of the seven-day no-reason return and exchange policy due to their unique characteristics. However, the absence of legal support should not be used as a basis to harm consumers’ interests. The aforementioned Interpretation (I) issued by the Supreme People’s Court in 2020 not only binds food producers and platform operators together, but also establishes that punitive damages do not require personal injury as a prerequisite. In other words, under Article 148 of the Food Safety Law, where food does not comply with food safety standards, consumers may claim punitive damages from the producer or operator. If the producer or operator raises the defense that “no personal injury was caused to the consumer,” the people’s court shall not support such a defense.
It can thus be seen that China's legislation is being updated along with the development of the times. The overnight sensation Oriental Selection livestream shopping platform has both New Oriental as its powerful backer and the advantage of riding the wave of the livestream e-commerce boom, so much so that its own stock price has risen accordingly. However, there are no shortage of cautionary tales of livestream shopping failures. It is hoped that Oriental Selection can truly live up to its name of “selection,” maintain strict quality control, and not let down the affection of consumers.