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In the future, live online broadcasts may need to provide a review feature; online stores should not mislead consumers by eliminating negative reviews, prior acceptance, and other methods.On October 20, the State Administration of Market Regulation announced the “Measures for the Supervision and Management of Online Transactions (Draft for Request for Comments)”, and the public will be requested starting today.
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The reporter noted that from April to May 2019, the State Administration for Market Regulation had requested public opinions on this approach. Compared to the previous version of last year’s draft consultation, this new version of the draft consultation incorporates new business formats such as live webcasting and goods delivery in the scope of supervision.
According to the draft, the scope of the Measures for the Supervision and Management of Online Transactions includes business activities that sell goods or provide services via the Internet, online social media, and live webcasts within China.
With respect to the delivery of live webcasts, the comment draft stipulates that webcast service providers shall provide a review function for online business activities conducted through webcasts.
In addition, the draft for comments requires that online stores do not display misleading reviews or mislead consumption by removing, hiding, modifying incorrect evaluations or handling methods, such as comments before, after, bad reviews or confusing evaluations of different products or services. By.
Approach 1: Delivery of goods by webcast should prominently display after-sales service and other information
Live streaming online has become a popular new way of shopping online. The draft consultation draft stipulates that online business operators who organize and conduct online business activities through other online services, such as online social media, online live streams, etc., must display information about the actual business entity of goods or services, after-sales service and other information significantly, or link jump. Go to the indicator. The webcasting service provider will provide a back-off function for online business activities conducted by webcasting.
The journalist pointed out that the “e-commerce law” does not directly stipulate whether other network service providers, such as social media and live streaming, are platform operators. Why does this draft consultation include new formats such as live webcasting and delivery of goods in the scope of supervision?
The relevant person in charge of the State Administration for Market Regulation said that the current basic consensus of all parts of society is that when other network service providers provide operators with services similar to the nature of the trading platform of network, have the attributes of the network trading platform operator. In view of this, it is clarified that other network service providers, such as social media and live broadcasts, will have to comply with the responsibilities of network trading platform operators in accordance with the law when they meet certain conditions.
Approach 2: Don’t mislead consumers by removing negative reviews, posting negative reviews, etc.
The comment draft stipulates that online transaction operators will not mislead or mislead consumers, will disclose product or service information in a comprehensive, truthful, accurate and timely manner, and will not use fictitious transactions, fabricated assessments, etc. to make false or false advertising that introduces misunderstandings; Any form of linked sales etc. will not be carried out by improper means.
Specifically, online commerce operators should not manufacture transactions; fabricate evaluations or instigate, induce or coerce others to make false or misleading evaluations; delete, hide, modify reviews or previously receive favorable comments, post negative comments or mislead others. The evaluation of different products or services and other inappropriate handling methods misleading the evaluation; use false or misleading pricing forms or pricing methods to mislead and induce consumers to transact with them; use false advertising, promotion and samples, Description of goods or services, standards of goods or services, etc.
The relevant head of the State Administration of Market Supervision stated that during the drafting process, some opinions considered that the regulations that did not allow platforms to eliminate consumer reviews did not take into account the need to eliminate malicious bad reviews, insults and slander .
The aforementioned person in charge indicated that after the investigation, this issue is clearly required in article 39 of the “Electronic Commerce Law”, and the provision of “evaluation should not be eliminated” does not add exceptions. Or the full picture of the “assessment” of the service provided is presented to fully perform the institutional function of credit constraint. The right to remove malicious bad reviews and insulting and defamatory information mentioned by relevant experts, academics and companies in practice faces significant operational problems that it is difficult for platform operators to judge and verify whether they are malicious and bad; furthermore, it is understood that the platform is in practice. If the internal operator requested removal by the platform operator due to false assessment, the actual removal rate was less than 5%.
Therefore, we insist on treating with caution the issue of removal of evaluation authority by platform operators and stipulate that the platform can technically handle the information contained in consumer evaluations that is prohibited by law and administrative regulations to be disclosed or transmitted in accordance with the law.
Approach 3: online commerce operators must obtain authorization to collect user information
With regard to the collection and use of personal information from online shopping consumers, the comment draft also contains provisions.
The comment draft clarifies that when network transaction operators collect and use users’ personal information, they must obtain the authorization and consent of the person being collected and, based on the principles of legality, justice and necessity, clearly state the purpose, necessity, scope and method of collection and use, and must not use them. Summarize the authorization method at once, or use the default authorization, combine it with other authorizations, stop installation and use, etc., to force or in disguise to force the collector to agree to the collection and use of information that is not directly related to commercial activities. The collection and use of sensitive information such as biometric information, health information, proprietary information, social information, etc. You will need to obtain the authorization and consent of the person collected one by one.
At the same time, online transaction operators and their staff will keep the personal information collected in strict confidence and will not provide it to any third party, including related parties, without the authorization of the person being collected.
Approach 4: ecommerce platforms should not force merchants to ‘pick one’
In recent years, online e-commerce platforms have forced merchants to “pick one of two” from time to time. Some e-commerce companies require merchants to only provide goods or services on this platform, and should not require, or in disguise, that merchants do not trade on other platforms at the same time.
In this regard, the draft for comments stipulates that operators of online trading platforms shall not abuse their dominant position to interfere with the independent operations of the operators on the platform, and shall not impose unreasonable restrictions or conditions on commercial cooperation. between platform operators and other platforms.
At the same time, it is proposed that platform operators can independently choose to conduct trading activities on multiple platforms. Regarding matters related to the establishment or modification of the exclusive commercial partnership between the platform and the platform operators, a fair negotiation will be carried out on equal terms and conditions of cooperation, the obligations of both parties and the Responsibilities for breach of contract will be clearly agreed in writing.
The head of the aforementioned State Administration for Market Regulation stated that in recent years some online trading platforms have used the relatively dominant position that operators have formed on the platform to impose unreasonable restrictions on cooperation between operators of the platform. platform and other platforms. still appears.
The official said that the draft is based on regulatory practices, focusing on the dominant position of the platform, the right of autonomous operation of the operators on the platform, and the principle of voluntary and equal consultation to regulate this issue.
Approach 5: Small value sporadic online transactions do not require registration of a market entity
According to China’s “Electronic Commerce Law”, “Individuals who conduct sporadic transactions of small value are exempted from the registration of market entities in accordance with the law”, but the meaning and scope of “sporadic small values” are not clear. This draft consultation clearly states it.
The draft for comments clarifies that “small sporadic transactions” means that network transaction operators have no more than 52 annual transactions and the annual volume of transactions does not exceed the average annual salary of urban private sector employees in the province, region autonomous or municipality of the previous year. When the same operator opens several online stores on the same platform or on different platforms, the annual number of transactions and the annual transaction volume of each online store will be combined.
The aforementioned person in charge explained that after extensive argumentation, prudential investigation, and repeated deliberations, the current draft follows the original legislative intent that “sporadic transactions of small value are, to some extent, supplemental personal expenses, incidental transactions, and do not continue “. The framework for determining “clear and unified number of transactions + regionally differentiated transaction amount” was established.
Among them, the number of annual transactions is expected to be 52 (approximately 1 online transaction occurs each week), and the volume of annual transactions is limited to the average annual salary of employees in private urban units in the province, autonomous community and municipality where they are located in the previous year. The aforementioned person in charge explained that this is mainly due to the fact that the current development of online transactions in various regions of our country is very unbalanced, and there are still large differences in per capita disposable income. It is necessary to adopt regional differentiation in the “small amount” standard. Design of the system to adapt effectively to the real economic and social development of various regions.
