People's Court: Luckin Coffee Won't Face Criminal Charges for Bug Incident, but "Bargain Hunters" Might!

The Luckin Coffee Bug Incident: A Legal Analysis

Regarding Luckin Coffee's unilateral cancellation of orders during the recent bug incident, netizens and lawyers have expressed diverse opinions on whether this constitutes infringement or breach of contract. Yesterday, a reader mentioned that the People's Court Daily published an article on its official WeChat account on the same day the bug incident occurred. The article not only discussed whether Luckin Coffee's handling of the bug incident was reasonable and legal but also addressed whether those who "exploited the loophole" were acting reasonably and lawfully.

First, the definition of "exploiting loopholes" refers to consumers purchasing related products at discounted prices offered by merchants through various welfare activities, thereby achieving the goal of saving money. However, the premise is that such welfare activities are specially provided by merchants. In situations where there is a significant price discrepancy between products due to system failures or human error, consumers who engage in excessive purchasing may violate the law!

During this Luckin bug incident, some netizens discovered that the prices of combo packages at Luckin Coffee stores on the Ele.me platform were abnormal, allowing them to purchase two coffee drinks for less than 5 yuan, or even for just 1 cent. Once the loophole was discovered, numerous netizens began swarming the ordering platform, hoping to take advantage of this opportunity.

Meanwhile, multiple stores across various cities on the food delivery platform experienced order congestion, prompting many stores to enter closing mode and subsequently cancel most orders made at extremely low prices. This led to dissatisfaction among netizens who failed to "exploit the loophole" or those whose refunds were not processed promptly. Under Luckin's official apology post, they demanded compensation in the form of discount coupons and other related benefits.

Legal Perspective on Order Cancellation

Regarding whether Luckin's approach of unilaterally canceling orders without communication was reasonable and legal, the People's Court Daily quoted a post from the well-known legal blogger Tan Dian Kanfa, stating: Objectively speaking, when consumers purchase low-priced products, they don't know whether the merchant is genuinely running a promotion or has made an error. Therefore, after consumers place orders and complete payment, a purchase contract is established and becomes effective. In this situation, if Luckin Coffee unilaterally cancels the order without communication with the ordering party, it constitutes a violation of the law, and consumers can demand that the merchant continue to fulfill the contract or request compensation for losses.

However, Luckin Coffee's explanation after the incident was that it was caused by staffing mistakes, so the order cancellation does not constitute direct order cancellation but rather constitutes contract revocation based on major misunderstanding.

According to Article 19 of the "Supreme People's Court's Interpretation on Several Issues Concerning the Application of the General Provisions of the Civil Code of the People's Republic of China," if a party has erroneous understanding of the nature of the act, the other party, or the variety, quality, specifications, price, quantity, etc., of the subject matter, and according to common understanding, the party would not have made the corresponding expression of intent if such erroneous understanding had not occurred, the People's Court may determine it as a major misunderstanding as stipulated in Article 147 of the Civil Code.

However, revoking a contract on the grounds of major misunderstanding requires filing a lawsuit with the court. According to Article 147 of the General Provisions of the Civil Code of the People's Republic of China, for civil legal acts implemented based on major misunderstanding, the party has the right to request the People's Court or an arbitration institution to revoke them. However, this process is costly and cumbersome, so Luckin could negotiate with consumers to obtain understanding and support, such as providing consumers with certain compensation, and consumers agree to the cancellation.

Luckin's Response and Compensation

Therefore, Luckin's expression in the apology letter issued on the same day that it would consider user compensation is a process of negotiating with consumers to obtain understanding and support. On April 19, Luckin gradually issued "32 yuan vouchers" to users of food delivery platforms whose orders were unilaterally canceled by Luckin. It would also issue coupons to non-food delivery platform users who experienced abnormal waiting and order cancellations during the morning peak hours on the day of the bug incident.

Legal Implications and Advice

Although Luckin Coffee's handling of the matter was too hasty, resulting in a lack of reasonable communication, legally speaking, Luckin's incident does not constitute illegality. Those who had the opportunity to purchase low-priced drinks this time also did not act unlawfully, after all, everyone didn't know whether this was a merchant's promotion or a mistake. However, realizing it was a bug while still maliciously "exploiting the loophole" or placing large orders, regardless of whether profit was gained, constitutes illegal behavior.

To this end, the People's Court reminds the public that seeking bargains should have its limits. Opportunities to "exploit loopholes" by obtaining discounts beyond the normal range due to system vulnerabilities should absolutely not be touched. "Exploiting loopholes" must also adhere to the principle of good faith. Even if some merchant platforms have technical vulnerabilities, it doesn't mean they can be illegally exploited. Consumers cannot use this as an excuse to cross legal red lines.

Image source: Internet

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