Top court zooms in on online fraud

China's top court has called on judges across the country to step up efforts to crack down on fraud in online consumption, urging stronger protection of consumers' legitimate rights and the promotion of a healthy digital marketplace.

On Monday, the Supreme People's Court underscored the importance of safeguarding consumers in cyberspace by releasing details of five recent cases. The court stressed that the growth of online shopping must occur within the boundaries of the rule of law.

One case involved a livestreamer surnamed Zhang, who was ordered to pay 10 times the purchase price of a bracelet to a buyer after falsely advertising the product.

During the livestream, Zhang promoted a black rosewood bracelet as red sandalwood and promised to "compensate tenfold for any fake". A consumer surnamed Hou bought the item for 1,000 yuan ($139), relying on Zhang's assurances. Upon receiving the bracelet, Hou discovered it did not match the description and took legal action.

Under the Consumer Protection Law, sellers who engage in false advertising, sell counterfeits or commit price fraud must compensate consumers three times the purchase price. However, the court ruled that Zhang's on-camera promise constituted a binding commitment and ordered him to pay 10,000 yuan in compensation.

"In livestream marketing, consumers heavily rely on the host's product description," the court said. "Zhang's pledge exceeded the legal standard and built Hou's trust in the product, forming a contractual relationship."

The ruling serves as a warning to others engaging in consumer fraud, the court said, adding that such decisions help build a more trustworthy online shopping environment.

"The deep integration of the digital economy and the real economy is creating new consumption patterns and growth drivers," the top court said.

"With online shopping now a dominant mode of consumption, courts must intensify efforts to tackle consumer rights violations and apply the law to emerging challenges."

In another case, a consumer surnamed Ma was awarded compensation and an apology from a dictionary app operator after a court ruled that its data collection practices had violated Ma's personal information rights.

The court found that the app required access to the user's phone number, even though its main function was vocabulary lookup. It ruled the data collection excessive and unjustified.

It emphasized that online platforms should collect user data only when users are fully informed and have voluntarily consented. By supporting Ma's claim, the court signaled a strong judicial stance against the misuse of personal information in digital services.