BYD sues influencers, offers big payouts to report defamatory content

New Delhi: Chinese electric vehicle giant BYD has sued 37 social media influencers for allegedly spreading false and damaging information about the brand. 

The legal action has come alongside a controversial program offering financial rewards of up to 5 million yuan (approximately $690,000) for tips leading to the identification of defamatory content online.

The lawsuits target influencers accused of posting misleading claims that BYD says have harmed its reputation, disrupted market order, and impacted the broader automotive industry. 

The company has also placed 126 additional content creators on an internal watch list for monitoring, signaling a broader crackdown on what it deems harmful narratives. 

Li Yunfei, General Manager of BYD’s Branding and PR Department, emphasised the company’s stance: “We welcome media criticism and public oversight, but we will not tolerate defamatory content or false accusations. Legal action will continue.”

BYD’s “News Anti-Fraud Office,” established years ago, actively encourages the public to report disparaging content, offering rewards ranging from 50,000 to 5 million yuan for verified leads. This initiative has sparked debate, with some critics arguing it incentivises vigilantism and could stifle legitimate critique, particularly in China’s tightly regulated media environment. Others see it as a necessary response to rampant misinformation in the competitive EV market, where BYD has emerged as a global leader, outpacing Tesla in certain quarters.

Court rulings cited by BYD illustrate the stakes. For instance, a Weibo user, “Zhou Haoran Sean,” was ordered to pay 100,000 yuan (about $13,800) and issue a public apology for accusing BYD of manipulating influencers to smear competitors. Another case saw the WeChat account “AutoBiBiBi” fined a similar amount for insulting BYD and its executives. False claims about product safety and financial instability have also led to penalties, including administrative detention for some users.

While BYD frames these actions as a defense against “organised” online attacks, it has yet to provide public evidence of coordinated efforts. The lack of transparency has fueled scepticism, with some questioning whether the lawsuits risk chilling free speech. In China, where defamation can be prosecuted as a criminal offense and major companies often have close ties to the state, such legal actions carry significant weight.

The practice is not unique to BYD. Other Chinese automakers like Great Wall Motor and Changan Automobile have similarly pursued influencers, contrasting with Western markets where such lawsuits are rarer. A notable Western parallel is Tesla’s dismissed case against Top Gear in 2008, where exaggerated claims were not deemed malicious. In China, however, proving reputational harm can be enough to secure a ruling, even if the claims contain elements of truth.