New eCommerce Rule in China: Changes Need Gov Approval

TMO Group TMO Group

Whether it is reasonable or not for eCommerce rules will impact the rights and interests of consumers, as well as the eCommerce benefit. Recently, China’s ministry of commerce released “3rd Party Retailing Platform Trading Rules “, which will come into effect in April 1st this year. (Click here to read our eCommerce solutions services)

It is known that eCommerce owner will need government approval if they change online trading rules. At the same time, it is also required to put changes in an eye-catching location of the website. Furthermore, the owner need to register the website, submit the new rules, make a explanation and customer opinion results in 7 days. By the way, they need to solicit opinions at least 7 days!

In addition, new rules also pointed that if platform owners change their trading rules before the date of new rules implementation, they need to register from the government in 60 days as well. Anyone who break the rule will be warned and announced to the society.

Nowadays, All JD, DangDang and Amazon are building their own shopping mall, which allow 3rd party sellers to join them. In the early stage, they do not have comprehensive rules that have good constraints. Along with the improvement of the relevant law, especially the rule of “no reason to return for 7 days”, the rights and interests of customers are ensured. China government think this new rule will not only secure customers benefit, but also strengthen eCommerce responsibility.

The rule of Taobao has 5 chapter and 75 sections. Basically it already covered many treatment from register to checkout and then to the after-sales service. For example the rule of credit evaluation. And JD also has its own system for their evaluation. It is also important to note that there are also some rules do harmful to consumers. In 11.11 single day last year, Tmall set some new rules, which limit the value to consumers. Such as the deposit will be deducted if there is no responsibility for sellers and the rule “no reason to return for 7 days” can not be used for pre-sell products.

In conclusion, it is a breakthrough for the upcoming eCommerce rule. It will be more accurate to divide responsibilities for platform owner, eCommerce owner and consumers. It will be an important that affected the development of eCommerce retailing in China.