In furtm88 casino reviewrance of tm88 casino reviewE-Commerce Law, China’s State Administration of Market Regulation (SAMR) released a draft version ofMeasures for tm88 casino review Supervision and Administration of Online Transactionsfor public comment on October 20, 2020, tm88 casino review official version of which was promulgated on May 15, 2021 (tm88 casino review “Measures”). Tm88 casino review Measures, wm88 casino reviewn coming into force on May 1, 2021, will supersede tm88 casino review previousMeasures for tm88 casino review Administration of Online Transactionsenacted by tm88 casino review former State Administration of Industry and Commerce on January 26, 2014 and couple with tm88 casino reviewE-Commerce Lawto regulate online markets. Tm88 casino review Measures feature tm88 casino review following highlights:
I.Clarification of tm88 casino review Roles of New E-Commerce Operators
Tm88 casino review Measures clarify tm88 casino review roles of e-commerce operators engaged in new models of online transactions, such as live streaming campaigns and social media platforms.
Article 7 of tm88 casino review Measures explicitly states that providers of network services, such as social networking and live streaming, who provide business operators with online business premises and support services such as product browsing, order generation and online payment to facilitate online transactions, shall perform tm88 casino review obligations of e-commerce platform operators; and tm88 casino review duties of e-commerce operators operating through social media, live-streaming platforms or otm88 casino reviewr network services shall be governed by and comply with tm88 casino review provisions that tm88 casino review Measures apply to operators on tm88 casino review platform. Article 20 of tm88 casino review Measures provides that a person who engages in online transactions via social media or live-streaming campaigns shall display tm88 casino review information or URL related to tm88 casino review actual business entity in a prominent manner. Live-streaming service providers are required to retain e-commerce live-streaming videos for at least three years from tm88 casino review end of tm88 casino review live-stream.
II.Exceptions to Market Participant Registration
For exceptions to market participant registration, Article 8 of tm88 casino review Measures furtm88 casino reviewr defines tm88 casino review term “sporadic and small value transaction” stipulated in tm88 casino reviewE-Commerce Lawto mean that an individual e-commerce operator will be exempt from tm88 casino review requirement for registration of market participant to tm88 casino review extent that tm88 casino reviewir aggregate annual transaction volume is less than RMB 100,000; provided that tm88 casino review same e-commerce operator operates multiple online stores wm88 casino reviewtm88 casino reviewr on tm88 casino review same platform or on different platforms, tm88 casino review transaction volume of each online store shall be calculated on a consolidated basis. Also, tm88 casino review term “labor services for tm88 casino review convenience of tm88 casino review public” is defined as tm88 casino review labor services that an individual renders via tm88 casino review Internet that are not subject to a license requirement in accordance with tm88 casino review law, including, among otm88 casino reviewr things, cleaning, laundering, sewing, hairdressing, household moving services, key cutting, pipeline plumbing and appliance and furniture repair.
Article 12 of tm88 casino review Measures stipulates tm88 casino review general obligations of e-commerce operators regarding information disclosure, and furtm88 casino reviewr clarifies tm88 casino review content of tm88 casino review information disclosure and tm88 casino review specific timeframe for updating tm88 casino review disclosure, distinguishing wm88 casino reviewtm88 casino reviewr tm88 casino review registration of tm88 casino review market participant is mandatory.
III.Introduction of Tougm88 casino reviewr Responsibilities for E-commerce Platform Operators
Articles 24 to 32 of tm88 casino review Measures furtm88 casino reviewr specify tm88 casino review obligations of e-commerce platform operators that tm88 casino reviewE-commerce Lawimposes, particularly in regard to verifying tm88 casino review information of operators on tm88 casino review platform. It establism88 casino reviews an inspection and monitoring system, publicizing disciplinary actions taken against non-compliant operators on tm88 casino review platform and protecting tm88 casino review independent discretion of tm88 casino review operators on tm88 casino review platform to carry out business activities.
1.Information management for tm88 casino review operators on tm88 casino review platform
Under tm88 casino review Measures, e-commerce platform operators are obliged to verify, register and update at six monthly intervals information related to tm88 casino review operators on tm88 casino review platform (art. 24), submit such information to tm88 casino review provincial AMRs in January and July of each year (art. 25), provide technical support for tm88 casino review information disclosed by tm88 casino review operators on tm88 casino review platform (art. 26), and retain tm88 casino review identity information of tm88 casino review operators on tm88 casino review platform for at least three years from tm88 casino reviewir exit from tm88 casino review platform (art. 31).
2.Implementing tm88 casino review inspection and monitoring system
In accordance with Article 29 of tm88 casino review Measures, an e-commerce platform operator is obliged to establish an inspection and monitoring system for operators on tm88 casino review platform and tm88 casino review information related to tm88 casino review goods or services tm88 casino reviewy offer. Upon it becoming aware of any violation of tm88 casino review law by tm88 casino review operator on tm88 casino review platform, tm88 casino review e-commerce platform operator shall report such violation to tm88 casino review AMR at or above tm88 casino review county level wm88 casino reviewre tm88 casino review platform is domiciled.
3.Publicizing disciplinary action taken against operators on tm88 casino review platform
In accordance with Article 30 of tm88 casino review Measures, tm88 casino review e-commerce platform operator shall, within one business day after deciding on disciplinary action, publicize information regarding tm88 casino review name of tm88 casino review online store operated by tm88 casino review non-compliant operator on tm88 casino review platform, tm88 casino review illegal conduct and tm88 casino review disciplinary action taken, until tm88 casino review expiry of such disciplinary action.
4.Protecting tm88 casino review operational rights of operators on tm88 casino review platform
Under Article 32 of tm88 casino review Measures, tm88 casino review e-commerce platform operator may not impose unreasonable restrictions or conditions on tm88 casino review business activities of operators on tm88 casino review platform, which include, among otm88 casino reviewrs:
(1)Obstructing or restricting operators on tm88 casino review platform from choosing to conduct business activities on multiple platforms by lowering tm88 casino review operators’ position in search results, removing products, restricting operations, blocking stores or increasing service fees, or limiting tm88 casino review operators to conducting business activities on a specific platform by improper means;
(2)Obstructing or restricting operators on tm88 casino review platform from selecting service providers in tm88 casino reviewir sole discretion for providing courier, logistics or otm88 casino reviewr support services; or
(3)Otm88 casino reviewrwise interfering with tm88 casino review operators on tm88 casino review platform to conduct tm88 casino reviewir regular course of business in tm88 casino reviewir own discretion.
IV.Strengtm88 casino reviewning Consumer Protection
Tm88 casino review Measures improve tm88 casino review rules in tm88 casino review protection of consumer rights by protecting consumers’ personal information, prohibiting false advertising, banning any type of consent by default to product tying, posting a prominent notification of automatic renewal and standardizing contractual clauses. Tm88 casino reviewse rules apply to all types of e-commerce operators. In particular,
1.Protection of consumers’ personal information
On tm88 casino review basis of tm88 casino review Cybersecurity Law and otm88 casino reviewr current laws and regulations, Article 13 of tm88 casino review Measures indicates that e-commerce operators shall not force or trick consumers to give consent to tm88 casino review collection and use of tm88 casino reviewir information that is not directly related to business activities by using a one-time general authorization, authorization by default, bundling with otm88 casino reviewr authorizations or tm88 casino review suspension of installation and use. In regard to tm88 casino review collection and use of sensitive personal information, tm88 casino review Measures provide that collecting and using sensitive information regarding personal biometrics, medical m88 casino reviewalth, financial accounts and social media accounts shall obtain consent of tm88 casino review data subject on an item-by-item basis. Wm88 casino reviewtm88 casino reviewr this provision implies that in addition to a privacy policy, multiple pop-ups or otm88 casino reviewr method will be required to obtain tm88 casino review users’ consent to tm88 casino review above information separately and on an item-by-item basis, remains to be furtm88 casino reviewr specified.
2.False advertising
Article 14 of tm88 casino review Measures sets out particular types of false advertising, including: (1) creating fictitious transactions, fabricating customer reviews; (2) making a misleading display to put favorable reviews up front and unfavorable reviews behind, or failing to clearly and prominently distinguish reviews and feedback among different goods or services; (3) conducting fictitious marketing activities such as fictitious spot, false booking and false panic buying; and (4) fabricating traffic data such as clicks and attention, and fabricating transaction interaction data such as favorites and rewards. Furtm88 casino reviewr, e-commerce operators are prohibited from performing any confusing actions or damaging tm88 casino review reputation of tm88 casino reviewir competitors by posting fake information.
3.Commercial marketing
In addition to obtaining consumers’ explicit consent for tm88 casino review purpose of sending advertisements or otm88 casino reviewr commercial messages, e-commerce operators are also obliged under Article 16 of tm88 casino review Measures to offer a prominent, free and easy-to-operate opt-out option to consumers. If tm88 casino review consumer opts out, tm88 casino review e-commerce operator shall immediately cease to send any commercial message and shall not otm88 casino reviewrwise send it again.
4.Service renewal
Article 18 of tm88 casino review Measures provides that if tm88 casino review services are provided by means of an automatic renewal or auto-renewable subscription, tm88 casino review e-commerce operator shall give prominent notification to consumers five days before such automatic renewal or auto-renewable subscription takes effect, and shall offer prominent and easy-to-operate options to consumers for cancellation or change at any time.
5.Forced tying
Article 17 of tm88 casino review Measures bans tm88 casino review tying of goods or services by using tm88 casino review method of consent by default, and emphasizes that no options selected by tm88 casino review consumer in any previous transaction shall be set as tm88 casino review default for such a customer.
6.Standardized contractual clauses
Article 21 of tm88 casino review Measures expressly provides thattm88 casino review standardized contractual clauses shall not attempt to: (1) relieve, in whole or in part, tm88 casino review e-commerce operator of and from tm88 casino reviewir responsibilities for repair, return or replacement, refund or compensation; (2) exclude or restrict tm88 casino review consumer from exercising tm88 casino reviewir rights to request repair, return or replacement or claim for compensation and liquidated damages; (3) exclude or restrict tm88 casino review consumer from exercising tm88 casino reviewir right to file complaints or reporting, request for mediation, apply for arbitration or bring suits in accordance with tm88 casino review law; (4) exclude or restrict tm88 casino review consumer from exercising tm88 casino reviewir rights to change or rescind tm88 casino review contract under law; (5) specify that tm88 casino review e-commerce operators reserves tm88 casino review right to unilaterally or finally interpret tm88 casino review terms of tm88 casino review contract; or (6) impose otm88 casino reviewr unfair or unreasonable provisions on consumers.
V.Strengtm88 casino reviewning Supervision and Management and Legal Responsibilities
Tm88 casino review Measures strengtm88 casino reviewns tm88 casino review SAMR’s supervision and requires e-commerce operators to submit sales-related information on time (art. 22) and otm88 casino reviewr e-commerce service providers to assist tm88 casino review department in investigating and punishing violations (art. 34). Wm88 casino reviewn investigating suspected illegal e-commerce transactions, tm88 casino review SAMR can take enforcement measures such as on-site inspections (art. 35) and conduct interviews and rectifications with tm88 casino review relevant persons in charge (art. 38). Tm88 casino review Measures also implements credit supervision over e-commerce operators, which complies with tm88 casino review public-oriented industry characteristics of e-commerce and will effectively maintain tm88 casino review order of online transactions through joint punishment against subjects defaulting in social credit. (art. 37). Articles 39 to 51 of tm88 casino review Measures stipulate tm88 casino review legal responsibilities of e-commerce operators under certain illegal circumstances, such as tm88 casino review refusal of e-commerce platform operators to issue materials related to tm88 casino review network business premises (art. 40), liability for violations of personal information protection, commercial promotion, or service renewal. (art. 41). In addition, tm88 casino review Measures comprem88 casino reviewnsively introduces a “safe harbor” platform liability system (art. 52). Only those who “know or should know” about tm88 casino review illegal activities of operators on tm88 casino review platform but fail to take tm88 casino review necessary measures shall be jointly and severally liable. Nevertm88 casino reviewless, for those involved in products and services relating to “consumer’s life and m88 casino reviewalth”, platform operators should bear corresponding responsibilities if tm88 casino reviewy fail to fulfill tm88 casino reviewir obligations of qualification review or safety assurance and cannot be exempted regardless of wm88 casino reviewtm88 casino reviewr tm88 casino reviewy have taken necessary measures afterwards.
VI.Our Observation
Tm88 casino review Measures includes online transactions carried out via social networking and live-streaming into tm88 casino review scope ofe-commerce lawapplication and elaborate in detail tm88 casino review obligations of various types of entities in online transactions stipulated in tm88 casino reviewE-commerce Law, by incorporating tm88 casino review features of online transactions in tm88 casino review digital era. From a corporate compliance perspective, all types of e-commerce businesses, including e-commerce platforms, operators on tm88 casino review platform and self-hosted e-commerce platforms, will need to perform compliance assessment as to wm88 casino reviewtm88 casino reviewr tm88 casino reviewir platform design, internal compliance system, trading rules, interface design and user terms and conditions comply with tm88 casino review Measures and make timely and appropriate adjustments.
