Imaginechina
A Luckin Coffee store in Shanghai.
As digital payments become the norm, a lawsuit involving Chinese coffee chain Luckin Coffee raises questions about consumer rights and data privacy in a cashless world.
A team of law students from East China University of Political Science and Law is claiming that Luckin’s refusal to accept cash payments at its stores infringes consumer choice and privacy rights.
When his phone battery died, law student Chen Yuhao asked to pay cash instead of ordering online at a Luckin Coffee location, but the staff offered instead to place the order on a personal device and accept cash as reimbursement.
However, without exact change, the transaction couldn’t go through.
Chen reported similar issues at other Luckin locations, observing that the stores lacked clear signage for in-person orders and did not appear ready to handle cash payments.
According to the students, Luckin’s cashless approach disadvantages some customers, violating their right to choose a payment method.
Team member Wen Xin, in an interview with Shanghai Law Journal, said: “While digital payments are convenient, cash remains essential for many people, especially those with financial or technical limitations.”
She argues that even as digital payments become more popular, businesses must retain cash options to ensure accessibility for all customers.
CFP
Customers wait in line to pay at a Luckin Coffee store in Yichang, Hubei.
The students also go after what they describe as Luckin’s excessive data collection practices.
To place an online order, users must provide personal information, including phone numbers, and often allow access to sensitive data, such as location or browsing history.
Their lawsuit alleges that these requirements go beyond what is necessary for routine transactions, infringing on consumers’ privacy rights.
“Collecting user data is standard practice,” the team acknowledges in their complaint, “but it must be done transparently and within the bounds of the law.”
The students argue that Luckin should disclose the specific purposes for data collection, usage, and storage duration, as well as obtain clear user consent. They also call on Luckin to employ more stringent safeguards to prevent unauthorized data access or leaks.
In August, local authorities warned Luckin about its data practices, advising the company to comply with privacy regulations.
Changning District Court is now leading mediation efforts, the Shanghai Law Journey reported.
,https://www.shine.cn/news/metro/2410303965/