"Discrimination Against Chinese When Refunding?"... 'Canada Goose' Faces Backlash in China

Chinese Authorities Demand Canada Goose Explain Exchange Policy... Boycott Signs Emerge
Following False Advertising Fines, Chinese Discrimination Issues Raised

[Asia Economy Beijing=Special Correspondent Jo Young-shin] The famous Canadian brand 'Canada Goose' is facing backlash in China. Even state-run media such as China CCTV have criticized Canada Goose's exchange policy, and public opinion in China has worsened to the extent that a boycott could break out at any moment.

According to Chinese media including Xinhua News Agency on the 2nd, the Shanghai Consumer Protection Committee held a meeting with Canada Goose the day before and demanded an explanation regarding the exchange and refund policies in China.

[Image source=Reuters Yonhap News]

They also ordered Canada Goose to clearly answer whether there are differences in refund policies by country and whether Chinese consumers are being discriminated against as a result.

The issue began when a consumer who was refused an exchange posted about it online. A Chinese consumer who purchased a 11,400 yuan (about 2.1 million KRW) padded jacket at a Canada Goose specialty store in Shanghai discovered a problem with the Canada Goose logo after returning home. The consumer claimed that the jacket had many defects and requested an exchange but was refused by the store.

In relation to this, Chinese media reported that when inquiring about exchange and refund policies at other Canada Goose stores, they were told that to receive an exchange or refund, one must contact a higher-level department, indicating that exchanges and refunds are practically difficult.

They also reported that in other countries, Canada Goose has a policy of exchanges within 30 days. Xinhua News Agency pointed out that while Canada Goose’s global official website posts an exchange policy of "unconditional returns within 30 days," stores in China allow refund requests only within 7 days. They raised suspicions that Chinese consumers are being discriminated against by Canada Goose.

Huanqiu Shibao reported that as the controversy grew, Canada Goose gave an official response stating, "Canada Goose strictly complies with laws and regulations related to return and exchange policies."

The media cited experts who said that Canadian companies seem to have prejudices against mainland Chinese consumers and tend to blindly believe those prejudices, claiming that foreign companies like Canada Goose with double standards are almost nonexistent in China.

The prejudice mentioned by Huanqiu Shibao appears to refer to "counterfeits." The price of counterfeit Canada Goose padded jackets sold in Korea around 2 million KRW varies by grade but is generally about 1,500 yuan. Canada Goose is a common brand on the streets of Beijing. The prejudice is presumed to include suspicions of "switching counterfeits with genuine products."

Huanqiu Shibao added that Canada Goose’s discriminatory policies will leave scars on Chinese consumers and will also affect Canada Goose’s brand influence and reputation.

Meanwhile, Shanghai regulatory authorities imposed a fine of 450,000 yuan (83.21 million KRW) on Canada Goose in August for false and exaggerated advertising. Shanghai authorities publicly criticized Canada Goose for deceiving Chinese consumers by advertising that the padded jackets used high-end material "Hutterite," while most of the filling was actually ordinary duck down.