Mingbike becomes first Chinese bike-sharing firm to be sued over deposit defaults
Consumer watchdog files a law suit against Guangzhou-based Mingbike after 30,000 users claimed they were left out of pocket
One of China’s defunct bike-sharing companies is being sued by a consumer watchdog for failing to refund users’ deposits in what could turn out to be a landmark case leading to similar law suits.
Guangdong Consumer Council filed the civil action on Monday against Guangzhou-based Mingbike, after more than 30,000 complaints made by customers left unable to reclaim their 199 yuan (US$29.87) deposits. Mingbike became the latest casualty of China’s overcrowded bike-sharing industry, laying off virtually all its employees, according to media reports last month.
The claimants are demanding immediate refunds, the setting up of a third-party dedicated account for deposit management and the scrapping of such charges for new users, according to a statement by the watchdog.
“Mingbike failed to return deposits as it had promised on its app, and neither did it put users’ deposits into a separate account for management,” said Chen Wenyuan, a lawyer from F&P law firm representing the plaintiff.
Chinese media reported in November that Mingbike had laid off 99 per cent of its staff, some of whom posted complaints on social media that their salaries had been withheld for several months.