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Toshiba Knows Little of China's Laws
As with many Chinese irked by Toshiba's decision not to extend to its Chinese customers a compensation offer made to US customers last year, Li Jinguang, a computer user in Beijing's Zhongguancun, the Chinese Silicon Valley, is poised to suspend his orders for the firm's laptop computers.
Li said he is prepared to act because of a sense of betrayal.
"I had to reflect on the firm's credibility. This is the only reason why I reconsidered my order at a critical time when I badly need four or five laptops manufactured by this firm," seethed Li, 37, a businessman.
Li's distrust was sparked by news released on May 8 on a Beijing-based news website, 21DNN, that reported Toshiba had refused to compensate Chinese consumers for a disk drive flaw in their laptop computers that could cause a loss of data.
"The firm's apathetic attitude towards Chinese customers is in stark contrast to what it did for its American customers in a similar case," Li said.
Several months ago, Toshiba agreed to pay 500,000 Toshiba notebook computer users in the United States a total of US$1.05 billion in compensation because of the possible glitch.
However, all Toshiba Vice-President Masaichi Koga offered to do to drown out protests from the Chinese media and its Chinese customers was to offer "everything" to help its Chinese laptop purchasers except provide compensation.
At a press conference, Toshiba even denied that "the floppy disk controller constitutes a problem or defect in Toshiba notebooks." On its US website, it said the compensation was an "amicable settlement."
But a question remains. If the laptop has no flaws, why did the firm compensate its US customers?
If the flaw in the disk drive controller will not cause potential damage, why did the firm agree to offer Chinese customers a software which could help patch the disk?
There is also a question whether the firm would have offered the patch software without the tireless digging of the domestic media.
Toshiba asserted it took a strong stand against Chinese consumers because China does not have concrete laws concerning this kind of compensation as does the United States, a stance that has aroused controversy.
In response, Dong Jingsheng, vice-chairman of the China National Consumers' Association, dismissed Toshiba's explanations as untenable and lacking in understanding of China's laws.
China's Law on the Protection of Consumers' Rights, Contract Law and Product Quality Law all stipulate that manufacturers are obliged to tell the truth and compensate consumers whenever at-large problems loom, Dong said.
The right to know the truth is a basic consumer right.
Toshiba's failure to publish a Chinese language notice to its users concerning possible computer glitches apparently violated the Chinese customers' rights to know the truth, said Dong.
The firm's denial of its product's quality problems was tainted with prejudice against Chinese customers, a factor lending credence to Chinese indignation, Wang Qianhu, an official with the same association was quoted by China Youth Daily as saying.
But a careful analysis of the situation shows that the case is not at all that simple.
The point at issue is not the quality problem that Toshiba laptops may or may not have, nor the difference between China's laws and US laws, argued some law experts who took issue with Wang.
What Toshiba has lost in this battle is not only several order sheets from Chinese customers, but a reputation that Toshiba has taken great pains to build for decades.
A world-renown enterprise cannot hold itself immune from customers' attacks. It is more important to win the respect and trust of its customers by offering excellent services and being honest with them.
Koga's refusal to admit Toshiba's product quality problem and lack of regard for meeting its legal obligations have subjected his firm's image to intense public scrutiny.
Dishonest is the only word that can be used to describe the firm's approach to its Chinese customers.
Throughout the development of this issue which began to heat up several weeks ago, Toshiba has done no serious soul-searching. Instead it has tried ruses to shirk its responsibility.
Toshiba's double standard in the treatment of its customers defies principles of modern trade involving fairness and equality and will cost it a high commercial price.
Three Toshiba laptop users have already filed a lawsuit with Beijing's No 1 Intermediate People's Court demanding compensation of 80,000 yuan (US$9,600).
It is also reported that more than 100 Toshiba laptop consumers from Northeast China have organized a class-action lawsuit to seek compensation from the Japanese company.
As a matter of fact, Toshiba would not be the first Japanese enterprise to drown in such embarrassment.
Two years ago, a Japanese software company produced game software which contained militaristic content that evoked widespread protests among the Chinese people. Despite fire from Chinese people and media, the firm refused to stop producing similar products and finally ended up in losing much market share in China.
Faced with its misdeeds, why does Toshiba not screw up its courage and provide a more convincing response to its Chinese customers?
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