(Yicai Global) July 27 -- Miaoya Camera, a mini-program of Chinese video platform Youku that allows users to create avatars, is allegedly infringing consumer rights by denying refunds.

The artificial intelligence-generated content tool does not support refunds, which may breach the consumer’s right to a fair deal, the Shanghai Consumer Council said via its official WeChat account yesterday.

Miaoya Camera has been a hit with Chinese netizens since Youku launched it on July 17. For just CNY9.90 (USD1.40), users can upload profile photos that can be used for avatars dressed in ancient costumes or made to look like movie or television characters.

But Miaoya Camera does not have a refund clause, according to the SCC. Its service agreement says “no refund is allowed after payment is completed” in a smaller grey font at the bottom of the payment page.

Moreover, when staff at the SCC applied to get their money back after Miaoya Camera’s AI-generated photos did not meet requirements, they could not. Other users also were unable to apply for refunds as the tool “does not support refunding.”

Whether Miaoya Camera should allow refunds depends on the specific provisions in the service agreement with users and whether it guarantees and protects users’ rights to be informed and make an independent choice in terms of pricing and payment and other consumer rights, Xia Hailong, a lawyer at Shanghai Shexcellence Law Firm, told Yicai Global.

If Miaoya Camera did not violate consumer protection law, then users cannot apply for refunds, He noted, adding that product developers should use larger and more noticeable fonts for important information to avoid disputes. 

Some users also expressed concern that in the service agreement the developer said that “Miaoya Camera can use the content of users in any way, media or technology, including ones that will be developed in the future.”

As a result, Miaoya Camera updated its service agreement on July 20 to “uploaded photos will only be used to make the avatars. They will not be extracted for any use and will be automatically deleted after the avatar is made.”

Editors: Shi Yi, Futura Costaglione