The Chongqing Higher People's Court has issued a precedent-setting ruling in a consumer rights case involving Mr. Zhou, who purchased a flood-damaged second-hand car. Mr. Zhou came across a sales video for a used car posted by a brokerage firm on an online platform. The video assured viewers that the vehicle had not been affected by flooding. However, upon receiving the car, Mr. Zhou discovered rusted seats and learned through further inquiry that the vehicle had indeed been involved in a water-damage incident. Swiftly, Mr. Zhou initiated legal proceedings, seeking contract termination and triple compensation. The initial court decision granted only the contract termination and refund of the purchase price, prompting Mr. Zhou to appeal. The appellate court found that the brokerage firm had failed to disclose the flood damage truthfully to Mr. Zhou, amounting to fraudulent conduct. Pursuant to Article 55 of the Consumer Rights and Interests Protection Law, the appellate court overturned the previous judgment and upheld all of Mr. Zhou's claims. The brokerage firm was ordered to return the car, refund the payment, and pay triple compensation. The court emphasized that consumers' rights to information and choice must be respected in used car transactions, and this decision is expected to contribute to a cleaner and more transparent second-hand car market.
