E-commerce platform found in breach of contract for overturning dispute resolution panel

A Beijing internet court has ruled that an e-commerce platform committed a breach of contract by overturning a decision made by its randomly selected dispute resolution panel. The case involved a dispute over the sale of a silver commemorative coin on the platform.

The platform, which specializes in the secondary market for commemorative coins, utilized a "Let's Judge" system for resolving disputes. When a buyer claimed the coin was defective and requested a refund, the dispute was escalated to the judging panel. This panel, composed of randomly chosen users, voted 7:1 in favor of the seller. However, the platform subsequently intervened, disregarded the panel's decision, and unilaterally ordered the seller to provide a refund.

The seller argued that the platform's actions constituted a fundamental breach of contract, as it had invalidated a ruling based on its own established rules. The seller sued the platform operator, seeking compensation for the coin's value, shipping costs, and interest. The platform defended its action by claiming the seller's evidence was insufficient and that it had the right to adjust the outcome after discovering a "white spot" defect on the coin.

The court found that while platforms can establish dispute resolution mechanisms, they must adhere to their own pre-published rules. The court determined that the platform's unilateral intervention and alteration of the panel's decision violated the terms of service. The court ruled that the platform breached its contract and ordered it to compensate the seller for financial losses. The seller was subsequently required to return the coin to the platform.