Pricing Error At Little Swan Washing Machine Shop Risks 30 Million Yuan Loss

The Little Swan Dongshan Franchise Shop in Jixi County, Anhui Province, China, is grappling with a potential 30 million yuan (approximately ₹35 crore) loss due to a significant pricing error. The issue arose on August 28 when an employee mistakenly labeled washing machines with incorrect prices, leading to a surge in sales.

According to the South China Morning Post, the online shop saw over 40,000 orders within just 20 minutes after customers spotted unusually low prices on the appliances. The company, which operates both online and offline, has since apologized and asked customers to cancel their orders.

The error led to a situation where the shop would face a loss of 30 million yuan if the orders were fulfilled. The total value of the products sold was 70 million yuan, but customers paid only 40 million yuan due to the pricing mistake. A customer identified as Ms. Wang reported buying three washing machines at a fraction of their original prices after seeing the discounted rates on social media.

The company, known for its domestic appliances, acknowledged the mistake and expressed deep regret. In a statement, they admitted, “Due to the misunderstanding, we made a significant mistake. We recognize that this issue has caused confusion and disrupted the market.” The company has requested customers to cancel their orders and assured them of prompt refunds.

Local market authorities are investigating the incident. Legal expert Zhao Liangshan noted that if the pricing error was unintentional, the company could petition the court to cancel the contracts and issue refunds without delivering the products.