Harvard law professor goes to war over $4 overcharge on Chinese food

Ben Edelman got into an email war over a $4 overcharge on his Chinese food.
Ben Edelman got into an email war over a $4 overcharge on his Chinese food.

We’re always on the lookout for unusual consumer stories, which is why an email war over a $4 overcharge on an order of Chinese Food definitely caught our eye.

Apparently, Ben Edelman, an associate professor at Harvard Business School, took exception to being overbilled for $53.35 worth of Chinese food from Sichuan Garden in Brookline, Massachusetts.

He promptly took to email to find out what happened.

Ran Duan, manager of Brookline's Sichuan Garden, quickly responded with an apology that the website’s prices were out of date.

For most people, that clarification would be enough. But not for Edelman, who teaches in Harvard’s Negotiation, Organization & Markets department.

Oh no, Edelman went to war.

As per the emails posted on boston.com’s site:

Thanks for the reply and for explaining what went wrong. We enjoyed the food, but we don’t need to trouble you for an updated menu.

Under Massachusetts law it turns out to be a serious violation to advertise one price and charge a different price. I urge you to cease this practice immediately.

In the interim, I suggest that Sichuan Garden refund me three times the amount of the overcharge. The tripling reflects the approach provided under the Massachusetts consumer protection statute, MGL 93a, wherein consumers broadly receive triple damages for certain intentional violations.

Please refund the $12 to my credit card. Or you could mail a check for $12 to my home.

Duan responded that his is a “mom and pop restaurant” and offers to honour the website’s outdated prices. But does that satisfy Edelman? Of course not.

It strikes me that merely providing a refund to a single customer would be an extremely light sanction for the violation that has occurred, To wit, your restaurant overcharged all customers who viewed the website and placed a telephone order – the standard and typical way to order takeout. You did so knowingly, knowing that your website was out of date.

You don’t seem to recognize that this is a legal matter and calls for a more thoughtful and far-reaching resolution. Nor do you recognize the principle, well established in applicable laws, that when a business intentionally overcharges a customer, the business should suffer a penalty larger than the amount of the overcharge – a principle exactly intended to punish and deter violations.

And was that enough? Au contraire.

I have already referred this matter to applicable authorities in order to attempt to compel your restaurant to identify all consumers affected and to provide refunds to all of them, or in any even to assure that an appropriate sanction is applied as provided by law.

In short order, despite Duan’s attempt to repay the $4, and then the $12, as well as a promise to fix the outdated prices on the website, the discussion quickly escalated to getting legal representation involved.

Are you represented by an attorney in connection with this matter W? If so, as an attorney, I am bound by Massachusetts attorney ethics rules to communicate only with that attorney and not with you.

Duan responded with a question everyone is thinking at this point:

Like I said, I apologize for the confusion, you seem like a smart man, but is this really worth your time?

To which Edelman responded:

You’re right that I have better things to do. If you had responded appropriately to my initial message – providing the refund I requested with a genuine and forthright apology – that could have been the end of it. I would have counted on your honesty to correct the web site and to notify other affected customers. Instead, you’re making up excuses such as the remarkable but plainly false suggestion that I was on the wrong web site. The more you try to claim your restaurant was not at fault, the more determined I am to see a greater sanction against you.

According to a Bloomberg Businessweek profile, Edelman is notorious for his tenacity in calling out corporate misdeeds. And in a statement to Business Insider, he defended his actions.

“I've been pretty diligent in holding large companies accountable for their false statements of price and other attempts to overcharge passengers,” he wrote. “Should all small businesses get a free pass? Some people seem to think so, I wonder if that really makes sense.”

Note to self: Do not overcharge this guy for Chinese food.

(Photo via Facebook)