A man who regretted bidding 90,000 yuan for a 1 yuan sea-view property because it had no sea view has gone viral on December 6.
Back in late October, Mr. Li from Sichuan saw an advertisement on the Ali platform: starting bid of 1 yuan for a sea-view property, a three-bedroom duplex with two bathrooms, buy one floor and get one free. The price quickly soared within 11 minutes, and Mr. Li eventually bid 88,000 yuan to win a property in Rizhao, Shandong, totaling over 94,000 yuan including commission.
After carefully examining the property and communicating with customer service, Mr. Li found out that the additional floor being given was actually an attic, and the “two rooms” in the three-bedroom setup were two separate spaces divided by a wall in the attic, with no sea view to speak of.
On December 5, Mr. Li raised the issue, accusing the auction company Yantai Xin Yi Dai Auction Network Technology Service Co., Ltd. (referred to as Xin Yi Dai Company) of false advertising. He chose not to pay the remaining balance and requested a refund of the deposit.
In response, a staff member surnamed Wang from Xin Yi Dai Company denied the allegations of false advertising and artificially inflating prices, claiming that Mr. Li regretted the bid after blindly bidding, thinking he could profit from reselling the property. Wang stated, “He thought this property could be worth 200,000 yuan – he could make tens of thousands of yuan by paying 80,000 or 90,000 yuan. Can you imagine?”
Regarding the promotion of a three-bedroom setup, Wang emphasized that the attic spaces could be utilized as living areas: “Can you call it a living room or a kitchen? Put a bed there, and it becomes a bedroom.”
As for the lack of sea view in the property, Wang explained, “In our area, properties built along the coast are called sea-view properties. If it’s visible from the house, it’s called a frontline sea-view property.”
Mr. Li recalled seeing news about people purchasing sea-view properties for a few yuan in late October, and impulsively decided to try his luck after seeing the Ali platform ad. Before the auction, Mr. Li did not carefully review the information.
According to the auction notice on the Ali Assets platform, the property features a three-bedroom layout with 63.64 square meters of floor area, located on the top floor (6th floor), fully furnished, with no property disputes or delivery issues. The starting bid was 1 yuan, with a deposit of 10,000 yuan and bidding increments of 100 yuan or multiples thereof.
Mr. Li stated that he briefly checked the property information before the auction began and saw a video showing sea views, but realized after winning the bid that the video was unrelated to the property and that the property did not conform to a standard three-bedroom setup, but rather had two rooms partitioned off in the attic, only suitable for placing a bed.
He believed that Xin Yi Dai Company engaged in false advertising, artificially inflated prices, and criticized the lack of strict verification by the Ali platform. He chose not to pay the remaining amount and filed a complaint with the platform, with his deposit currently frozen. Xin Yi Dai Company rejected his demands, stating that if the property is resold at a lower price in a second auction, Mr. Li would need to compensate according to regulations.
Mr. Li realized that trying to cut corners can lead to substantial losses, saying, “I didn’t expect this kind of trick.” He has already filed a lawsuit against Xin Yi Dai Company and Zhejiang Taobao Network Co., Ltd. (Ali Auction Platform) with the Hangzhou Yuhang District Court, but the court has not yet accepted the case.
During October, Xin Yi Dai Company also announced multiple auctions for properties starting at 1 yuan.
Renowned criminal defense lawyer and director of the Henan Ze Jin Law Firm, Fu Jian, believes that Xin Yi Dai Company’s promotion of a “three-bedroom” property with two rooms as attic spaces and the lack of an actual sea view in the so-called “sea-view property” constitutes false advertising, potentially misleading consumers.
Due to the possibility of fraudulent contract formation resulting from false advertising by Xin Yi Dai Company, Mr. Li has the right to cancel the contract, choose not to pay the remaining amount, and demand a refund of the deposit.
As an online auction platform, Ali has a responsibility to verify the information of the listings. Consumers also have a duty to conduct reasonable inspections; otherwise, their negligence leading to financial losses may not be legally protected.