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Dangdang Loses Lawsuit Over Canceled Orders

Beijing Evening News, 12/06/11

The Dongcheng District People's Court in Beijing yesterday ruled in favor of five consumers who sued Chinese B2C e-commerce site Dangdang (NYSE: DANG) for canceling their orders during a book sales promotion.

One plaintiff placed three orders for 66 books totaling RMB 150 during a midnight sale on the site on August 9, only for Dangdang to cancel two orders due to lack of supplies and canceling the third order later, simply labeling the transaction as "unsuccessful." Dangdang argued that since the first two orders were out of stock, no contractual agreement had been reached, and that the third order was canceled because of a pricing error.

Thousands of customers had orders canceled during the promotion and are seeking legal redress, and 60 have already filed lawsuits.

Editor's Note: For more information on this topic, please see "Dangdang Customers Sue Over Canceled Orders," MD 8/23/11 issue.

Keywords: e-commerce Internet B2C Dangdang DANG law litigation

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