Xiaomi Threatened With Compensation Of Hundreds Of Millions Of Rupiah After Losing The SU7 Ultra Fake Ad Lawsuit

Xiaomi carbon fiber kappa version SU7 Ultra. (Photo: Xiaomi)

JAKARTA Xiaomi Auto is facing a legal storm after losing an appeal case over allegations of misleading advertising for its flagship electric sedan, SU7 Ultra. This court decision in China forced Xiaomi to pay large compensation to consumers who felt aggrieved by claims of features that did not match reality.

This case stems from the complaint of a consumer who feels cheated by the promotion of an optional carbon engine hood for 42.000 yuan or around Rp. 97 million. In advertising, the component is claimed to have a design that is able to direct airflow to the center of the wheel and help with heat disposal.

However, the demolition results showed the hood was almost identical to the standard aluminum version, only weighing about 1.3 kilograms, as reported by Carnewschina, Thursday, October 23.

The Suzhou Medium People's Court rejected the appeal filed by Xiaomi Auto and confirmed that the previous decision would still apply. In its ruling, the court ordered Xiaomi to return a down payment of IDR 46 million.

Then pay compensation of around Rp293 million, and bear the costs of lawyers around Rp23 million. This defeat was a major blow to Xiaomi Auto, which has just stepped into the electric automotive industry.

Although he had tried to calm consumers by offering to replace loyalty points worth 2,000 yuan or equivalent to Rp4.6 million, this step was deemed insufficient and was finally sued by the buyer.

Interestingly, this case does not seem to be over yet. More than 300 other consumers are reportedly ready to file similar charges. If these lawsuits are accepted, Xiaomi has the potential to bear fantastic compensation.