JD.com, a platform celebrated for its commitment to authentic products, is under fire after a wine and hairy crab promotion turned into a false advertising controversy. The incident has raised questions about the platform’s oversight capabilities, despite its claim of strict due diligence.
According to The Paper News (澎湃新闻), a consumer surnamed Zhang purchased two bottles of Australian wine and two hairy crab coupons for RMB 87.49 (US$12.09) on August 7 from Kunshang Online Wine Specialty Store (坤尚葡萄酒线上专营店) on JD.com. The coupons promised eight hairy crabs, a popular autumn delicacy in China, sourced from Yangcheng Lake—renowned for its high-quality crabs.
Zhang received the wines and coupons promptly, but after making an appointment in late September, during the peak crab season, no crabs were delivered. When Zhang requested a refund, the store offered only RMB 20 (US$2.74) in compensation. Subsequent attempts to contact the seller went unanswered, and the product page was removed.
A Pattern of Complaints
Zhang’s case is not unique. Multiple complaints have surfaced online, accusing Kunshang of false advertising. During negotiations with affected consumers, the store quietly deregistered its business. Official records show the store, registered as Sanhe Kunshang Business and Trade Limited (三河市坤尚商贸有限公司), was established in July 2024 and applied for deregistration on September 24.
Further investigation by Vino Joy News revealed that the wine featured in the promotion, labeled as “Australian Imported Louis Salaunes 14% Dry Red Wine,” is actually a product of Shandong-based Jiangting Wine Co., Ltd. (山东省江庭酒业有限公司). The company specializes in bulk wine imports, domestic bottling, and OEM services.
JD.com’s Commitment Questioned
The scandal has cast a shadow on JD.com’s reputation for authenticity. Richard Qiangdong Liu, JD.com’s chairman, has previously highlighted the platform’s focus on genuine products, often contrasting it with Alibaba’s issues with counterfeit goods. Since 2014, JD.com has emphasized its commitment to authentic imported wines, partnering with renowned brands such as Penfolds, Yellow Tail, and Casillero del Diablo. Its slogan, “Buy Authentic Wine, Shop on JD,” underscores this focus.
JD.com’s wine sales reflect its significant market presence. In 2023, the platform recorded RMB 2.25 billion (US$310.4 million) in wine sales. For the first nine months of 2024, sales reached RMB 1.85 billion (US$255.2 million), marking a 5% year-on-year increase, according to Kerral Xiao, Head of Wine for JD Retail’s Supermarket Business Group, as we have reported.
Legal and Consumer Implications
China’s E-Commerce Law holds platforms accountable for ensuring product safety and protecting consumer rights. If a platform knowingly allows violations without taking action, it can face joint liability with the seller. Penalties for serious violations range from RMB 500,000 to RMB 2,000,000 (US$68,574 to US$274,300).
Although the Kunshang store is now deregistered, affected customers continue to pursue compensation through JD.com’s customer service.
By the time of publishing, JD.com had not issued an official statement regarding the incident.
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