Trip.com Car Rental Faces "Bait and Switch" Allegations as Land Rover Order Delivers Toyota

Deep News
Oct 11

A prominent social media influencer recently exposed what appears to be a "bait and switch" incident involving Trip.com Group Limited's car rental service, where a customer who ordered a Land Rover Defender received a Toyota Land Cruiser instead.

The incident came to light when a Weibo blogger with over 1.72 million followers shared his experience of renting what was supposed to be a Land Rover Defender for three days through Trip.com's platform, paying 5,567 yuan for the four-day rental. However, upon pickup, he received a battle-worn Toyota Land Cruiser with 80,000 kilometers on the odometer, filled with cigarette ash and stains throughout the interior, emitting a foul odor.

According to the customer's documentation, the rental agreement and vehicle inspection form both indicated a 2-year-old Land Rover Defender from Xinbailong (Chengdu) Business Information Consulting Service Co., Ltd. The company could not be reached for comment.

**Multiple Similar Incidents Reported**

This appears to be part of a broader pattern. Another customer reported paying 2,671 yuan for a BMW M4 with less than two years of usage, only to receive an older Porsche 992 with over 100,000 kilometers. The same customer experienced a second incident, paying 2,521 yuan for a one-year-old BMW X5 but receiving a BMW 7 Series with 170,000 kilometers.

Additional complaints include false advertising regarding vehicle age. One customer in Hulunbuir selected a Buick GL8 advertised as being within two years old, but discovered upon inspection that the vehicle was manufactured in 2021, contradicting the platform's age claims.

**Verification Process Under Scrutiny**

Multiple users have questioned the effectiveness of Trip.com's vehicle inspection procedures. According to customer accounts, the inspection process has been reduced to a formality, with users being guided to sign electronic inspection forms without proper verification. Some customers report being told to sign contracts on their phones, with inspection documents being signed automatically after entering ID information.

Industry insiders suggest that some smaller rental companies on the platform may substitute vehicles to cut costs or address inventory shortages, while the platform's oversight and quality control of partner companies remains inadequate.

**Recent Regulatory Pressure and Executive Share Sales**

Trip.com Group Limited has faced increased regulatory scrutiny recently. In August, Guizhou market regulators summoned five platforms including Trip.com for discussions. In September, Zhengzhou Market Supervision Administration conducted administrative interviews with Trip.com's operating entities.

The regulatory attention coincides with significant share sales by company executives. In September, co-founder and President Jane Sun planned to sell 70,000 American Depositary Shares (ADS) worth approximately $4.54 million. This marked her fourth reduction this year, bringing her total 2024 divestment to approximately 219 million yuan.

Executive Chairman James Liang disclosed plans to sell 1 million ADS shares valued at $73.75 million (approximately 526 million yuan) in early September, his first reduction this year. Chief Operating Officer Xiong Xing also announced plans to sell 400,000 ADS worth about $28.49 million (approximately 203 million yuan).

Combined, the executive team's planned share sales total approximately 760 million yuan, raising market speculation about future company prospects, particularly as the sales occurred near historical stock price highs.

**Company Performance Amid Complaints**

Despite service quality issues, Trip.com Group Limited reported strong financial performance in the first half of 2024, with total revenue of 28.7 billion yuan (up 21% year-over-year), operating profit of 7.67 billion yuan (up 27%), and net profit of 9.19 billion yuan (up 17%), translating to average daily revenue of 159 million yuan.

However, consumer complaint data tells a different story. The Black Cat Complaint platform shows over 140,000 total complaints against Trip.com, with thousands specifically related to car rental services, including vehicle mismatches, false advertising, refund difficulties, and insurance claim disputes.

**Market Position and Legal Implications**

According to the "2024 China Self-Drive Tourism" report, Trip.com car rental holds 13% market share, ranking third behind Shenzhou Car Rental (24%) and eHi Car Rental (18%), while facing competition from emerging platforms like Fliggy, Hello, and Didi.

Chen Yinjiang, Deputy Secretary-General of the Consumer Rights Protection Law Research Association of the China Law Society, emphasized that when consumers rent vehicles through platforms like Trip.com via third-party merchants, any discrepancies between actual vehicles and platform descriptions constitute merchant breach of contract, warranting refunds and compensation.

"The rental service provider bears primary responsibility, but platforms must also fulfill two key obligations: conducting qualification reviews of merchant partners and maintaining effective oversight. If platforms fail to properly verify qualifications or adequately supervise partners, resulting in consumer harm, they bear joint liability," Chen explained.

The platform's responsibility extends beyond mere facilitation, as electronic commerce law requires platforms to ensure merchant compliance and consumer protection, making oversight failures a matter of legal liability rather than just customer service concerns.

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