XPeng Responds to Fine of $1,569 for “Overlord Clause”

A consumer told Sina Finance on Thursday that on May 8, 2019, he bought a XPeng G3 vehicle in Hangzhou, Zhejiang Province and signed a purchase agreement with the EV maker.

On August 30, 2019, the vehicle owner reported to Gongshu District Market Supervision Administration of Hangzhou, saying that the agreement had not been filed according to law, and there was an overlord clause that needed to go through investigation. The market regulator found that XPeng had committed illegal acts and fined the company 10,000 yuan ($1,569).

However, XPeng still refused to apologize and observe his request to re-sign the contract. The vehicle owner also said that after being punished, XPeng only revised the car purchase contract in Hangzhou, not all regions across the country.

In response to this matter, XPeng responded on Thursday that this contract had been filed in September 2019. The contract was to facilitate negotiation of the terms drafted in advance. If consumers disagree with it, they can negotiate with the company to amend the contract.

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XPeng also stressed that it will, as always, abide by the law, and there are no clauses infringing consumers’ rights in the contract.