China’s top consumer protection organisation has warned Canada Goose Holdings against “bullying” customers in China with its return policies, just three months after the winterwear brand was fined for false advertising.
The premium down jacket manufacturer has been a hot topic on Chinese social media in recent days over its handling of a case involving a customer who wanted a refund of her purchases amounting to 11,400 yuan ($1,800) after finding quality issues.
She said she was told by Canada Goose that all products sold at its retail stores in mainland China were strictly non-refundable, according to her account which went viral online.
State-backed media such as the Global Times newspaper later cited Canada Goose as denying that it had a no-refund policy and that all products sold at its retail stores in mainland China were refundable in line with Chinese laws.
The company did not respond to Reuters’ request for comment.
This is not the first time the Canadian brand has been the subject of attack in China. State media took shots at Canada Goose in September, accusing the firm of false advertising, before a long-running dispute between the two countries over the arrest and detention of Huawei executive Meng Wanzhou was resolved.
“No brand has any privileges in front of consumers,” the government-backed China Consumer Association (CCA) said in an opinion piece posted on its website on Thursday morning.
“If you don’t do what you say, regard yourself as a big brand, behave arrogantly and in a superior way, adopt discriminatory policies, be condescending and bully customers, you will for sure lose the trust of consumers and be abandoned by the market,” the CCA said.
Representatives of the brand were summoned for talks on Wednesday by the Shanghai Consumer Council to explain its refund policy in China.
The dressing down of Canada Goose comes as tension between China and Western countries has fuelled patriotism and driven some shoppers to turn to home-grown labels.
Canada Goose was also fined 450,000 yuan in September in China for “misleading” consumers in its ads.
- Reuters with additional editing by Jim Pollard