Should L’Oreal Be Responsible for Li Jiaqi’s Live Streaming Incident and Pay to Customers Three Times the Price Besides Refund?

(By You YuntingThe news came from media1 that a recent sale event that Li Jiaqi performed with L’Oreal went awry. In early October L’Oreal announced on weibo that customers in Li Jiaqi’s live streaming room would be offered “the best of the year and get 50 face masks by paying for 20 ones”. Later L’Oreal gave away thousands of coupons at its official Tmall store, causing the final price much lower than the presale price and refused claims of most customers in the live streaming room. Both Li Jiaqi’s and Wei Ya’s live streaming rooms made an statement of stopping cooperation with L’Oreal. I would like to discuss the legal outcome that L’Oreal should have in this case.

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Analysis on Common Legal Risk of Chinese Company’s Ads

By You Yunting

The competition in Chinese market is so fierce that the company would strive to make their ads be more outstanding, yet that could also bring them the risks of administrative punishment. In today’s essay, you will see our analysis on the common risk for corporate propaganda.

I. No fulfilling to the promise in propaganda

The most typical case shall be the ads from Beijing Hyundai (note: the link is in Chinese), the joint venture of Hyundai in China. As claimed in the its ads, the chief of the company promised not to reduce the sales price of its vehicle in the coming 2 years, which soon be overthrown by its price adjustment within 120 days after that with the pressure from market competition. On that, we saw the consumer filing a group lawsuit against its break-in of promise. Despite as investigated by the company that, the words of the chief is not quit the same as claimed in the media report, and Hyundai was therefore judged of no liability, the Korean brand faced a devaluing of social reputation in China. In our opinions, the losses of intangible asset of the car maker are much more than the claimed compensation. And that shall mainly lie with the over promise by the company.

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