In Guangzhou, 232 consumers encountered induced consumption under the guise of “government subsidy” at a home store in Guangzhou, with approximately 8.96 million yuan (RMB) in unfulfilled contract amounts.
According to a report by The Paper on June 9th, several Guangzhou residents recently reported that they signed contracts for whole-house customization and other renovation projects at a brand store within a home mall in Zengcheng District, only to face situations where the business failed to fulfill their obligations.
In November 2024, Mr. Jin visited the European-owned store on the third floor of the Home Gallery in Xintang Wanhu, Zengcheng District of Guangzhou to inquire about whole-house customization. At that time, the salesperson claimed that they were offering significant discounts.
Mr. Jin stated that the store had introduced a “brand 39,800 yuan discount package”. In their promotional materials, they emphasized that the package could be combined with the “government subsidy” policy.
On that day, Mr. Jin paid 85,000 yuan as a deposit at the European-owned store, with the payment account belonging to Guangzhou Deyate Decoration Design Engineering Co., Ltd.
On December 29, 2024, the two parties signed a contract and finalized the sales list. After deducting the tax points, Mr. Jin was supposed to receive a refund of 18,052.7 yuan. However, despite repeated reminders, the renovation team did not start work. It wasn’t until February this year that he returned to the store and found that many other consumers were facing the same issues.
Several consumers mentioned that since October 2024, the European-owned store had started failing to deliver orders. In March 2025, the store vanished into thin air. The situation was similar at the Gu family home store. In March 2025, employees at the Gu family home store reported that the boss could not be contacted, and two days later, the employees were also missing.
After this incident, the Gu family home, the brand involved, has agreed to bear some responsibility, and has currently fulfilled 20% of the contract content.
The contracts signed between several consumers and the stores clearly stated that the “owners enjoy the government subsidy for old-for-new benefits”. Many consumers also indicated that they were attracted by the “government subsidy” promise at the time, which led them to pay the full amount or even more during the payment process.
Several victims also mentioned that initially, they faced excuses from the involved brands and malls when seeking consumer rights protection. Mr. Wu, another victim, stated that he was convinced to make a full payment by the store’s salesperson because he trusted the brand protection from the mall and store.
Public information shows that the Home Gallery in Xintang is a result of the renovation upgrade from the original Wanhu Home Mall in Zengcheng, Guangzhou. In December 2018, Wanhu Home Mall and Home Gallery reached a strategic cooperation agreement, leading to the official operation of the Home Gallery in Xintang, becoming the 303rd branch nationwide.
Since February this year, consumers have lodged complaints against the Gu family home, European-owned home, and Original Sichuan Decoration stores in Xintang Town, Zengcheng District, for issues such as breach of contract, difficult refunding of deposits, and lack of follow-up after sales, after signing furniture and renovation contracts.
This incident involves 232 consumers, with approximately 8.96 million yuan in unfulfilled contract amounts.
As of now, the brand parties of European Home, Gu family home, and the Wanhu Home company have addressed the obligations of 103 consumers through advance compensation and delivering goods to fulfill the terms (32 fully resolved, 71 partially resolved), involving an amount of 2.8547 million yuan.
It is reported that 119 consumers have chosen to file a class-action lawsuit.
The event at the home store in Zengcheng District, Guangzhou, appears to be about businesses absconding and unmet promises. However, it reveals the loopholes in prepayment consumer supervision and the lack of responsibility from the mall.