The Government Pay Attention to the Online Transactions

Monday, 15 February 2016 19:12

Recently, SAIC issued their draft “the Guidelines on Seven-day Free Return of Online Commodities” and seek for the public feedback. With the development of internet, the online retailing becomes more and more popular and thus caused a lot disputes. Further, with the renewal of Law of the People's Republic of China on the Protection of Consumer Rights and Interests in Year 2013, the concept ”Seven-day Free Return of Online Commodities” had been introduced as a legal basis during the normal selling activities. This new regulation has a good combination for both “seven-day free return” policy and the online selling activities.


The main problems to be solved in this new regulation

1.    The different understanding on the commodities which cannot be returned;

2.    The different understanding on the “in good condition with no damage”;

3.    The management liability for the online transaction platform;

4.    The detailed procedure for returning the commodities;


Some interesting points addressed in this new regulation

Article 7: the following commodities are not applicable for “seven-day free return policy”: (1) the tailor-made commodity. (2) fresh and perishable commodities, (3) downloaded or sealed off digital commodities, (4) delivered newspaper or magazines;


Article 8the following commodities can be agreed with the consumer that they are not applicable for “seven-day free return policy” at the time of purchasing: (1) due to the human safety or health, it is not suitable for returning such as food, drug, health food, cosmetics, and the underneath commodity; (2) having the great depreciation after the activation; such as mobile phone, laptop or other digital products; (3) phone card or game card which is delivered online; (4) the sales products, such as close to the expiration date or with the poor package;


Article 9: “in good condition with no damage” means its logo, trademark logo, product certification, instructions for use are complete. For card, its value is not reduced. The reasonable test is acceptable and not affects it’s in good condition.


Article 10: further regulate what is not deemed as the reasonable test: (1) for clothing, shoes, hats, bags, toys, textiles: damaged, stains, deformation, washed, or obviously has been used, (2) mobile phones, computers, digital products, home appliances: without by authorized maintenance, alteration, torn, altered anti-counterfeit labels, indicating labels, the machine serial number, or obviously has been used; (3) food, health food, cosmetics, maternal and infant supplies, office supplies, automotive supplies category: once sealed packaging is damaged.


Article 12: the start date for “seven-day free return” is the delivered date.


Article 28, 31& 32: the online transaction platform should take the first responsibility and encourage it to have “in advance compensation policy”. The online platform should improve the inspection procedure during the returning commodities and avoid its re-selling as the new products.


Article 33: this regulation is also applicable to TV, phone, mail purchasing.


Dongjin comments: this regulation shows the trend for governments making strictly supervision on the online selling activities. The company involving in such industry should have a good preparation on its legal control.


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Ms. Jojo Hu

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