Vatti Bails on World Cup Pledge to Refund Nearly USD12 Million to Customers
Xu Zuwei
DATE:  Jul 19 2018
/ SOURCE:  Yicai
Vatti Bails on World Cup Pledge to Refund Nearly USD12 Million to Customers Vatti Bails on World Cup Pledge to Refund Nearly USD12 Million to Customers

(Yicai Global) July 19 -- Chinese appliance maker Vatti, which pledged full refunds to June customers if France won the World Cup, has backed out of its promise and offered gift cards instead of cash.

When France beat Croatia to claim the Jules Rimet on July 15, the Guangdong-based partner of the French national team should have dished out CNY79 million (USD11.7 million) in refunds to customers who bought a certain appliance package in June, online news site The Paper reported today. But the company has found itself unable to fulfill its promise.

After Les Bleus lifted the trophy, Vatti announced online that it was beginning the refund process. But when Yicai Global contacted the firm, a customer service rep said customers who bought the eligible appliances, the 'Champion Set,' would be given gift cards equal to the value of their purchase rather than a refund.  The cards can be used at self-stores on e-commerce platforms JD, Tmall, Suning and Gome.

The general understanding of a "full refund" would be a cash reimbursement, said Qiu Baochang, president of the Beijing Society of E-Commerce Law. Alternatives to accepting the card include negotiating with Vatti, complaining to market regulators, hiring a medium or suing the firm, he added.

Offline customers are facing bigger problems. Those looking to claim their refund have been asked to provide signed proof that they would be given a full refund when buying the Champion Set, which many said they were not warned about at the time of purchase. Law professionals said consumers can seek legal channels to right the situation.

"The idea of advertising costs going back to customers was a good idea," the China Consumer Association said on July 18. "We hope Vatti fulfills its promise and for all consumers in line with its pre-sale agreements. Integrity is the perfect footnote for any marketing campaign."

Vatti announced the campaign on May 31, just hours before the promotional period began. The crusade pushed online sales up 20 percent to CNY300 million through June, and though the retail value of the goods to be refunded was nearly CNY80 million, the actual costs to the company are closed to CNY30 million.

Editor: James Boynton

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Keywords:   Vatti,France,SOCCER,Football,WORLD CUP,FIFA,Croatia,MARKETING,HOME APPLIANCES