Chinese Home Repair Giant Promises Fix for Business Practices
Cheap plastic washing machine motors marked up to 659 yuan ($91); a 20-yuan gas stove igniter sold to consumers for more than 250 yuan; turning on a faucet itemized as 100 yuan of labor.
These are just some of the examples of overcharging and unnecessary repairs revealed during the annual China Central Television “315 Gala” on March 15, which shone a spotlight on the business practices of Woodpecker Home Maintenance, China’s largest home appliance repair platform. The exposé has sparked a flood of consumer complaints, forcing the company to promise refunds and a review of its business practices.
The “315 Gala” is an annual program in China dedicated to exposing unethical business practices and promoting consumer rights. This year’s Gala revealed multiple legal and ethical violations, including frozen shrimp products with excessive phosphate levels and disposable underwear that were not properly sterilized.
A segment dedicated to Woodpecker Home Maintenance generated particular outrage on domestic social media, with over 87 million views on a related Weibo hashtag and thousands of refund requests.
As the biggest home repair platform in China, Woodpecker operates in more than 300 cities, offering services from home appliance repair and cleaning to electronic repairs. It fulfilled nearly 6.6 million home appliance repair orders in the first half of 2024, according to an investor prospectus.
However, frustrations about unclear pricing, excessive charges, and poor-quality repairs have been piling up on consumer service platforms. A search on consumer service platform Heimao Tousu found more than 6,600 complaints regarding Woodpecker services.
Zhu, a Woodpecker customer who gave only their surname for privacy reasons, told Sixth Tone she had been charged 255 yuan to replace a water pipe in February.
“I asked how much the pipe cost, but the technician said it depends on the platform’s quote,” said Zhu.
According to CCTV’s investigation, commissions played a significant role in the company’s behavior, including excessive charges, inflated pricing, and unnecessary repairs.
A human resources manager at the company, surnamed Hu, told CCTV that maintenance workers earn around 50% commission on kitchen appliances or washing machine repair orders.
“If you want to make money, you have to suggest replacements,” one Woodpecker repair worker told CCTV. “You just can’t be honest; there’s no way to be honest.”
The high commission rate incentivizes technicians to overcharge, while the platform also encourages them to quote inflated prices in order to maximize its profits, CCTV found.
Many Woodpecker repair workers only receive minimal training, including a three-day technical course and a two-day administrative class focused on talking consumers into accepting higher rates.
In the wake of the exposé, Woodpecker issued two public apologies in less than three hours. “All of our management team has made a decision: to give up public relations strategies and accept scrutiny under the sunlight,” reads the second statement.
On March 16, the platform announced a series of changes including issuing refunds to overcharged customers, making its pricing more transparent, and overhauling its technician training program.
It also said it plans to roll out a DeepSeek-powered function offering repair tips and cost estimates, as well as a new consumer complaint channel.
Woodpecker issued over 15,000 refunds and fee adjustments by Tuesday evening, according to the company.
Chen Liteng, an analyst from the Electronic Commerce Research Center, told domestic media that Woodpecker is not an outlier in the home repair industry, and called for greater standardization and regulation.
“The issues with the Woodpecker platform are just the tip of the iceberg,” Chen said.
Additional reporting: Lu Zhiyi.
(Header image: VCG)
