Online Transactions to be Standardized

Thursday, 09 May 2019 11:30

The State Administration for Market Regulation ("SAMR") has recently drafted the Measures for Supervision and Administration of Online Transactions (Draft for Comment) (the "Draft for Comment") to seek public comments by May 29, 2019.

Since the E-Commerce Law of the People’s Republic of China has taken effect since 1st Jan 2019, SAMR further amended the original “Administrative Measures for Online Trading” and make this Draft for Comments. The Draft for Comment covers seven aspects as general provisions, online business operators, consumer rights protection, supervision and administration, legal liability, and supplementary provisions.


The Draft for Comment clarifies "the registration of online business operators as market players" and expressly states that, except for business operators not required under the law to be registered as market players, all online business operators shall register themselves as market players according to law, adding that natural persons running shops online are allowed to be registered as privately-owned businesses if they meet certain conditions.


The identity information of the online business operators shall be clearly posted in a significant position. Data of online transactions shall be sent to the local administration of market and regulation on a regular basis. The online business operator shall have the personal information of the consumers well protected during collecting and using it.


Moreover, it regulates the code of conduct for online business operators. It requires that the real identity information of business operators applying for doing business on a platform shall be verified, checked, recorded and filed, and that a mechanism shall be established to inspect and monitor products and service information displayed on the platform, and irregularities found on the platform shall be dealt with and reported according to the law.

The link to the complete article in Chinese is for your reference.



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