(Yicai Global) Dec. 18 -- Guangdong Consumer Council filed the country's first public interest lawsuit in the bike-sharing sector recently, looking to sue the operator of Xiaoming bike for failing to refund user deposits.

In order to protect the rights of consumers, the consumer council filed a suit with Guangzhou Intermediate People's Court against Guangzhou Yueqi Information Technology Co., which operates Xiaoming, requesting the company immediately refund users who have applied to receive their security deposit back, set up an instant refund system for users who may apply in the future, and waive deposit requirements for new users.

Several Chinese bike sharers have encountered cash problems and a plethora of user complaints of late amid mounting public concern over how they handle deposits and prepayments. During the GCC's investigation, Xiaoming Bike said that funds received from deposits were held in an account managed by banks, but lenders refuted this, leaving users wondering where their cash has actually ended up.

The council has received a growing number of complaints from consumers who couldn't get their deposits back from Xiaoming Bike. As of Dec. 8, the council had received over 30,000 complaints about the company, with 2,952 users directing their issues directly to the GCC's headquarters. The majority of the complaints regard consumers being unable to obtain their security deposits.

The GCC hopes to alleviate deposit-related issues and promote more scientific and reasonable marketing models in the bike-sharing sector via judicial means so that consumers can enjoy shared bikes without fear of providers abusing their rights.