SHANGHAI – In a landmark legal ruling, a Shanghai court has ordered two teenagers to pay over 2.2 million yuan (approximately $309,000) in compensation to hotpot giant Haidilao and its subsidiary after they urinated into a restaurant’s broth and posted a video of the act online. The verdict, delivered last Friday, holds the minors and their parents accountable for the significant damage caused.
The incident, which took place in a private dining room at a Shanghai branch of Haidilao in February, gained widespread attention after the two 17-year-olds, identified as Tang and Wu, uploaded a video of their actions to social media. The act, committed while under the influence of alcohol, was deemed by the court to be a deliberate “act of insult” that infringed upon the company’s property rights and reputation.
Haidilao had initially sought more than 23 million yuan in damages, citing operational losses, reputational harm, and the cost of compensating thousands of customers. However, the court’s ruling was more nuanced. It awarded 2 million yuan for reputational and business damage, 130,000 yuan for the cost of replacing tableware and cleaning the restaurant, and 70,000 yuan in legal fees.
A key part of the court’s decision was its stance on Haidilao’s customer compensation. While the court acknowledged that the restaurant’s move to refund customers was a reasonable and necessary step to mitigate its damaged reputation, it ruled that the additional compensation—a cash payment of 10 times the amount of the customer’s bill—was a “voluntary business decision” and not a direct result of the teenagers’ actions. Therefore, the court concluded that the teenagers were not liable for that part of the cost.
The ruling also placed significant responsibility on the parents of the two teenagers. The court found that the parents had “failed to fulfil their duty of guardianship,” and they were ordered to bear the financial compensation. This aligns with legal principles in China that hold parents responsible for the actions of their minor children. Both the teenagers and their parents were also ordered to issue public apologies in designated newspapers.
The incident highlights the serious legal and financial consequences of online stunts in China, particularly those that impact public health and safety, as well as corporate reputation. The case serves as a warning to both minors and their guardians about the potential for severe legal repercussions for their online and offline behavior.
Since the incident in February, Haidilao has been praised for its swift and comprehensive response, which included replacing all hotpot equipment and conducting thorough cleaning and disinfection. The company, known for its exceptional customer service, operates over 1,000 restaurants globally and has a strong brand reputation that it has worked to protect.
