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An Online shopping contract dispute case - Mr. Zhang v. Mr. Zhong - No. Seventh of the ten typical civil and commercial cases concerning foreign affairs in Hangzhou, Zhejiang, China

August 1, 2023

Key point:

If the purchaser and overseas purchasing agent form a commission contract relationship, and the purchaser requests the purchasing agent to bear the seller's responsibility on the grounds that the overseas purchased goods do not have Chinese labels or inspection and quarantine certificates, which violate Chinese laws and regulations, they should not be supported.

Basic Case Fact:

Mr. Zhang purchased a health food from Mr. Zhong through a cross-border e-commerce platform. Mr. Zhong purchased the product in Japan after receiving the order and shipped it through overseas direct mail. After receiving the goods, Mr. Zhang found that there was no product manual attached, no shopping invoice, and no customs quarantine certificate. Therefore, he filed a lawsuit, claiming that the goods were counterfeit and inferior products, which did not comply with the provisions of China's Food Safety Law on imported food. He demanded that Mr. Zhong bear the compensation responsibility of "one refund, one compensation, and ten". Mr. Zhong argued that he had accepted Mr. Zhang's commission to purchase goods from legitimate Japanese shopping malls and was able to provide corresponding purchase receipts and overseas shipping vouchers. The goods were not counterfeit or inferior, and requested that Mr. Zhang's lawsuit be dismissed.

Result:

After hearing, the Hangzhou Internet Court believed that the two parties had formed an entrustment contract relationship. Mr. Zhong provided Mr. Zhang with the purchase receipt and overseas delivery voucher, and had fulfilled the duty of care and reporting as the trustee. Under the commission contract relationship, Mr. Zhang claimed a refund of one claim and a compensation of ten claims on the grounds that the goods involved in the case did not have Chinese labels or inspection and quarantine certificates, and should not be supported. He rejected all of Mr. Zhang's litigation requests.

Typical significance:

In recent years, "overseas purchasing" has gradually become a popular term in the field of cross-border e-commerce. In reality, the practice of engaging in online sales activities under the guise of "overseas purchasing" often occurs. The legal nature of "overseas purchasing" and "online sales" is different, and the legal responsibilities are also vastly different. In specific cases, the content of the contract terms and the true meaning of the parties should be explored based on the agreement of the parties, combined with the ownership or actual possession of the goods at the time of the contract formation, to uncover the veil of "overseas purchasing", accurately define the legal relationship, and determine rights and obligations in accordance with the law.

To judge the "overseas purchasing agent" in online transactions and establish an entrustment contract relationship, the following requirements should be met: first, the online page of overseas purchasing agent goods should have a clear description of the purchasing agent service, that is, the buyer should be informed in a Attention seeking way that the product belongs to overseas purchasing agent; Secondly, overseas purchasing goods should generally be shipped from overseas, with the purchaser being the actual customs declaration person and the corresponding tax payer; Thirdly, if overseas purchasing goods are listed on online trading platforms, they should be included in the purchasing category. If the above requirements are met, it can be determined that both parties have established a commission contract relationship. On the contrary, it should be recognized that the purchaser and the purchasing agent have established a sales contract relationship. Under the commission contract relationship, determining whether the purchased goods meet safety standards should be based on the legal regulations and relevant standards of the first place of sale. Domestic buyers who claim that the purchasing agent bears the responsibility of the seller on the grounds that the product does not have a Chinese label or inspection and quarantine certificate in violation of Chinese laws and regulations should not be supported. This case clarifies the criteria for the establishment of entrusted contract relationships in the field of overseas purchasing, and provides a beneficial exploration of the definition of product liability for overseas purchasing.