Measures for the Administration of Online Trading

Article 2: Parties engaging in the online trading of goods and the provision of related services shall comply with the laws and regulations of the People's Republic of China and these Measures.

Article 3: For the purposes of these Measures, the term “online trading of goods” means the business activity of selling goods or providing services over the internet (including the mobile internet).

For the purposes of these Measures, the term “related services” means for-profit services provided for the online trading of goods, such as third party trading platforms, publicity and promotion, credibility rating, payment and settlement, logistics, courier delivery, online access, server hosting, virtual space leasing, and design and production of websites and web pages.

Article 4: Parties engaging in the online trading of goods or the provision of related services shall comply with the principles of free will, fairness and good faith, and with commercial ethics, public order and good social customs.

Article 5: Online merchants and providers of related services are encouraged to, and supported in, innovate/innovating business models, enhance/enhancing the level of their services and promote/promoting the growth of the online economy.

Article 6: Online merchants and providers of related services are encouraged to, and supported in, establish(ing) industry organisations, establish(ing) industry conventions, promote/promoting the building of industry reliability, strengthen(ing) industry self-regulation and promote/promoting compliant development of the industry.

Part Two: Obligations of online merchants and providers of related services

Section One: General provisions

Article 7: Business operators that engage in the online trading of goods or the provision of related services shall carry out business registration in accordance with the law.

A natural person who engages in the online trading of goods shall carry on his/her business activities on a third party trading platform, and provide his/her true identity information, such as his/her name, address, valid identity document and valid contact information, to the third party trading platform. If he/she satisfies registration conditions, he/she shall carry out business registration in accordance with the law.

If the goods sold or services provided by a business operator engaging in the online trading of goods or the provision of related services require the securing of administrative permission as specified in laws, administrative regulations or State Council decisions, such administrative permission shall be secured in accordance with the law.

Article 8: A legal person, other economic organisation or sole/family proprietor that has carried out registration with, and collected its business licence from, the administration for industry and commerce and that engages in the online trading of goods or the provision of related services shall post the particulars recorded on its business licence or a link to its business licence in a prominent position on the homepage of its website or the main page on which it conducts its business activities.

Article 9: Goods and services that are traded online shall be in compliance with laws, regulations and rules. A business operator may not trade online goods or services the trading of which is prohibited by laws or regulations.

Article 10: When an online merchant sells goods or provides services to consumers, it shall comply with laws, regulations and rules such as the Law on the Protection of the Rights and Interests of Consumers and the Product Quality Law, and may not prejudice the lawful rights and interests of consumers.

Article 11: When an online merchant sells goods or provides services to consumers, it shall provide to consumers information such as its business address and contact information, the quantity, quality and price of, or charge for, the goods or services, the time limit for, and method of, performance, forms of payment, methods of returning and exchanging goods, safety instructions, risk warnings, after-sales services and civil liability, take security measures to ensure the security and reliability of transactions and provide the goods or services as undertaken.

Article 12: When an online merchant sells goods or provides services, it shall ensure the integrity of the goods or services, may not unreasonably break goods or services up into smaller parts for sale, may not set minimum consumption rates or otherwise charge unreasonable charges.

Article 13: When an online merchant sells goods or provides services, it shall issue to consumers an invoice or other such proof of purchase or service document in accordance with relevant state provisions or commercial practice; with the consent of consumers, it may provide the same in electronic format. Proofs of purchase or service documents in electronic format may serve as the basis for handling consumer complaints.

If a consumer requests an invoice or other such proof of purchase or service document, the online merchant must issue one.

Article 14: The information provided by online merchants and providers of related services on their goods or services shall be true and accurate, and they may not carry out false publicity or make false representations.

Article 15: When selling goods or providing services, an online merchant or provider of related services shall comply with laws, regulations and rules such as the Trademark Law and the Provisions for the Administration of the Registration of Enterprise Names, and may not infringe others' rights, such as their exclusive right to use a trademark or right to an enterprise name.

Article 16: When an online merchant sells goods, the consumer shall have the right to return the same with no questions asked, within seven days from the date of receipt thereof, the following goods excepted:

(1) goods made to order for the consumer;

(2) fresh, live or perishable goods;

(3) digital goods, such as audio and video recordings and computer software, that have been downloaded or the packaging of which the consumer has opened; and

(4) delivered newspapers or periodicals;

In addition to the goods set forth in the preceding paragraph, return with no questions asked shall not apply to other goods that, by virtue of their nature, the consumer confirmed were not returnable at the time of purchase.

Goods returned by a consumer shall be in good condition. The online merchant shall refund the price of the goods paid by the consumer within seven days from the date of receipt of the returned goods. The shipping charges for the return of the goods shall be borne by the consumer, unless otherwise agreed by the online merchant and the consumer, in which case such agreement shall apply.

Article 17: If an online merchant or provider of related services uses standard contract clauses in its business activities, the same shall comply with laws, regulations and rules, determine the rights and obligations of both parties to the transaction based on the principle of fairness, highlight for consumers' attention the clauses that are of material interest to consumers and shall be explained upon request by the consumer.

An online merchant or provider of related services may not set forth provisions, by way of standard contract clauses, etc., that are unfair to consumers or unreasonable, such as provisions that deny or restrict consumers' rights, reduce the business operator's liability or release it from liability, or increase the liability of consumers, and may not employ standard contract clauses together with technical means to compel transactions.

Article 18: If an online merchant or provider of related services collects and uses consumers' or business operators' information in its business activities, it shall comply with the principles of lawfulness, legitimacy and necessity, expressly state its objectives for, and method and scope of, collection and use of the information, and secure the consent of the parties whose information is being collected. An online merchant or provider of related services that collects and uses consumers' or business operators' information shall disclose its rules for the collection and use thereof, and may not collect and use information in violation of laws or regulations or in breach of the agreement between the parties.

An online merchant or provider of related services and its working personnel must strictly maintain the confidentiality of the collected personal information of consumers or the data and information on the trade secrets of business operators, and may not disclose, sell or illegally provide the same to third parties. An online merchant or provider of related services shall take technical and other necessary measures to ensure the security of information and prevent the disclosure and loss of information. Where information has been or could be divulged or lost, it shall promptly take remedial measures.

An online merchant or provider of related services may not send electronic information of a commercial nature to a consumer without his/her consent or request, or if he/she has expressly indicated that he/she does not wish to receive the same.

Article 19: When selling goods or offering services, an online merchant or provider of related services shall comply with laws such as the Anti-unfair Competition Law, and may not prejudice the lawful rights and interests of other business operators or disrupt the social or economic order through the use of unfair competition means. Additionally, it may not use network technology means or media to carry out the following acts of unfair competition:

(1) using the proprietary domain name, name or logo of a well-known website without authorisation or using a domain name, name or logo similar to that of a well-known website to confuse it with another's well-known website, thereby causing consumers to mistake the two;

(2) using without authorisation or forging the electronic logo of a government department or association and carrying out false publicity that causes misunderstanding by people;

(3) using virtual goods as prizes to carry out sales with the drawing of the prizes where the specified value of the virtual goods on the online market exceeds the limit permitted by laws and regulations;

(4) enhancing its or another's commercial reputation through means such as fabricated transactions or deletion of unfavourable comments;

(5) harming the commercial reputation of a competitor by way of a malicious evaluation that runs counter to the facts after a transaction has been reached; or

(6) another act of unfair competition as specified in laws or regulations.

Article 20: An online merchant or provider of related services may not carry out an illegal technological attack on the website or web page of a competitor, making it impossible for such competitor to carry on its business in a normal manner.

Article 21: An online merchant or provider of related services shall submit business statistics information to the local administration for industry and commerce in accordance with provisions of the State Administration for Industry and Commerce.

Section Two: Special provisions for third party trading platform operators

Article 22: A third party trading platform operator shall be an enterprise with legal personality that has been registered with, and secured a business licence from, the administration for industry and commerce.

For the purposes of the preceding paragraph, the term “third party trading platform” means an information network system that, in the course of the online trading of goods, provides for both or more trading parties web page space, virtual place of business, trading rules, trade brokering, information publishing and other such services for them to independently carry out their trading activities.

Article 23: A third party trading platform operator shall examine and record the operational entity identity of a legal person, other economic organisation or sole/family proprietorship that applies for access to its platform to sell goods or offer services, create a registration dossier, regularly verify and update the same and, in a prominent location on the main page on which it conducts its business activities, disclose the particulars recorded on its business licence or post a link to its business licence.

A third party trading platform operator shall examine and record the true identity information of a natural person who does not yet satisfy the conditions for business registration and has applied for access to its platform to sell goods or offer services, create a registration dossier, regularly verify and update the same and issue a symbol evidencing that his/her personal identity information is true and lawful, which symbol it shall place in a prominent location on the main page on which he/she conducts his/her business activities.

When conducting an examination and registration, the third party trading platform operator shall procure the familiarity with, and consent to, the registration agreement by the other party and bring to the attention of such party the clauses on its/his/her obligations and liability.

Article 24: A third party trading platform operator shall enter into an agreement with a business operator that applies for access to its platform to sell goods or offer services that specifies both parties' rights, obligations and liability in respect of access to and withdrawal from the platform, assurance of the quality and safety of the goods or services, protection of the rights and interests of consumers, etc.

In the event that a third party trading platform operator revises the agreement with the business operators on its platform or the trading rules, it shall do so in keeping with the principles of transparency, continuity and reasonableness, and the revised provisions shall be posted and the relevant business operators notified thereof at least seven days in advance. If the revised provisions of the agreement or rules are not acceptable to a business operator on the platform and it/he/she applies to withdraw from the platform, the third party trading platform operator shall permit it/him/her to do so and bear the relevant liability in accordance with the original agreement or trading rules.

Article 25: A third party trading platform operator shall establish administrative rules and regulations in respect of platform trading rules, trading security assurance, consumer right and interest protection and harmful information handling. All such administrative rules and regulations shall be displayed on its website, and the convenient and integral consultation and saving thereof by users shall be ensured by technical means.

A third party trading platform operator shall take the necessary technical means and management measures to ensure that the platform operates normally, and provide the necessary and reliable trading environment and trading services so as to safeguard the online trading order.

Article 26: A third party trading platform operator shall establish an inspection and monitoring system for the business operators that sell goods or offer services on its platform and the information on their goods or services that they publish. If it discovers an act that violates industry and commerce administration laws, regulations or rules, it shall report the same to the administration for industry and commerce of the place where it is located and, in a timely manner, take measures to put a halt to the same. When necessary it may cease providing the third party trading platform services to the business operator in question.

If the administration for industry and commerce discovers an act that violates industry and commerce administration laws, regulations or rules on the platform, it shall demand in accordance with the law that the third party trading platform operator take measures to put a halt to the same, and the third party trading platform operator shall offer its cooperation.

Article 27: A third party trading platform operator shall take the necessary measures to protect the exclusive rights to use registered trademarks, enterprise name rights and other such rights and, in respect of an infringement of a rights holder's exclusive right to use its/his/her registered trademark, enterprise name right or other such right, or other act of unfair competition that infringes its/his/her lawful rights and interests for which it/he/she has evidence showing that a business operator on the platform has committed, the third party trading platform operator shall take the necessary measures in accordance with the Tort Liability Law.

Article 28: A third party trading platform operator shall establish a self regulation system for consumer dispute settlement and consumer rights protection. When, in the course of a consumer buying goods or accepting a service on the platform, a consumer dispute arises or his/her lawful rights and interests are prejudiced and he/she requests that the platform mediate, the platform shall do so. If the consumer seeks to protect his/her rights by other means, the platform shall provide to him/her the true website registration information of the business operator and actively assist the consumer in protecting his/her lawful rights and interests.

Article 29: If a third party trading platform operator itself deals in goods or offers services on its platform, it shall distinguish and mark the portion it itself operates and the portion operated by other business operators in a prominent manner so as to avoid misunderstanding by consumers.

Article 30: A third party trading platform operator shall examine, record and keep the contents of information on goods and services published on its platform and the time of publication. The record of the business licence or of the true personal identity information of a business operator on the platform shall be kept for not less than two years from the date of cancellation of the business operator's registration on the platform, and backup copies of transaction records and other such information and records shall be kept for not less than two years from the date on which the transaction was completed.

A third party trading platform operator shall take technical measures such as electronic signatures, data backups and failure recovery to ensure the integrity and security of online trading data and information, and ensure the genuineness of raw data.

Article 31: If a third party trading platform operator intends to cease providing third party trading platform services, it shall announce the same in a prominent location on the main page of its website and notify relevant business operators and consumers thereof not less than three months in advance and take the necessary measures to protect the lawful rights and interests of the relevant business operators and consumers.

Article 32: Third party trading platform operators are encouraged to provide a fair and impartial credibility rating service for parties involved in transactions, objectively and impartially collect and record information on the credibility of business operators, and establish a credibility rating system and credibility disclosure system to provide warning of trading risks.

Article 33: Third party trading platform operators are encouraged to establish consumer protection deposits. Such consumer protection deposits shall be used for the protection of the rights and interests of consumers, and may not be diverted to other purposes. Details of the use thereof shall be disclosed on a regular basis.

If an agreement is reached between a third party trading platform operator and a business operator to establish a consumer protection deposit, the parties shall expressly provide for the amount allocated to, and the method of managing, using and refunding, the consumer protection deposit.

Article 34: A third party trading platform operator shall actively assist the administration for industry and commerce in investigating and dealing with illegal online business acts, provide such information as the registration particulars and transaction data of the business operator suspected of operating in an illegal manner on the platform and may not conceal the true circumstances.

Section Three: Other special provisions for providers of related services

Article 35: A provider of related services that provides services for the online trading of goods such as online access, server hosting, virtual space leasing, and website and web page design and production shall require applicants to provide proof of business qualifications and true personal identity information, execute service contracts therewith and record, in accordance with the law, information on their online access. Backup copies of information and records of an applicant such as its business licence or his/her true personal identity information shall be kept for not less than two years from the date of termination or completion of performance of the service contract.

Article 36: A provider of related services that provides credibility rating services for the online trading of goods shall collect credibility information by lawful means, adhere to the principles of neutrality, impartiality and objectivity, and may not revise at its own discretion the credibility rating or related information of users, or use collected credibility information for any illegal purpose.

Article 37: To provide publicity and promotional services for the online trading of goods, relevant laws, regulations and rules shall be complied with.

If publicity and promotional services are provided or goods or services are evaluated on social media such as blogs and microblogs and remuneration is received therefor, the nature thereof shall be truthfully disclosed so as to avoid misunderstanding by consumers.

Article 38: A provider of related services that provides services such as online access, payment and settlement, logistics or courier delivery for the online trading of goods shall actively assist the administration for industry and commerce in investigating and dealing with illegal acts relating to the online trading of goods, provide the registration particulars, contact information, address and other such relevant data and information of the online merchant suspected of operating in an illegal manner, and may not conceal true circumstances.

Part Three: Regulation of the online trading of goods and the provision of related services

Article 39: The administration for industry and commerce at the county level or above shall be responsible for the regulation of the online trading of goods and the provision of related services.

Article 40: The administration for industry and commerce at the county level or above shall establish integrity files for the online trading of goods and the provision of related services, and keep records of the results of routine monitoring inspections and the outcome of the investigation and handling of violations of the law. It shall, based on the records in the integrity files, regulate online merchants and providers of related services in a manner consistent with their credibility classification.

Article 41: The administration for industry and commerce at the county level or above where the business operator that has committed a violation of the law in connection with the online trading of goods or the provision of related services is domiciled shall have jurisdiction over such violation. Where the business operator carries on its business operations on a third party trading platform, the administration for industry and commerce at the county level or above where the third party online platform provider is domiciled shall have jurisdiction over the violation. Where the administration for industry and commerce at the county level or above where the third party online platform provider is domiciled would have difficulty exercising jurisdiction over an offender that is located elsewhere, it may transfer the information on the violation by the offender to the administration for industry and commerce at the county level or above where the offender is located for handling.

Where a dispute over jurisdiction arises between two or more administrations for industry and commerce concerning a violation of the law in connection with the online trading of goods or the provision of related services, they shall refer the same to their common higher level administration for industry and commerce for the designation of jurisdiction.

With respect to a violation of the law in connection with the online trading of goods or the provision of related services that has a material impact on a national scale, grossly prejudices the rights and interests of consumers, triggers a large number of complaints or the facts of which are complicated, the State Administration for Industry and Commerce shall be responsible for the investigation and handling thereof or it shall designate the provincial-level administration for industry and commerce to take responsibility for the investigation and handling thereof.

Article 42: If a consumer lodges a complaint with the administration for industry and commerce in the course of activities connected with the online trading of goods or the provision of related services, the same shall be dealt with in accordance with the Measures for the Handling of Consumer Complaints by Administrations for Industry and Commerce.

Article 43: The administration for industry and commerce at the county level or above may exercise the following functions and powers when investigating and dealing with a suspected violation of the law in the online trading of goods or the provision of related services:

(1) questioning the relevant party in question, and investigating relevant details of its suspected violation of the law in the online trading of goods or the provision of related services;

(2) reviewing and taking copies of the party's transaction data, contracts, vouchers, books and other relevant data and information;

(3) placing under seal or seizing in accordance with laws and regulations articles used in committing the violation of the law in connection with the online trading of goods or provision of related services such as goods, tools and equipment and placing under seal the place of business used in committing the violation of the law in connection with the online trading of goods or provision of related services; and

(4) other measures that may be taken as provided in laws and regulations.

When the administration for industry and commerce lawfully exercises the functions and powers set forth in the preceding paragraph, the party in question shall offer its assistance and cooperation, and may not refuse or interfere.

Article 44: The administration for industry and commerce may make use of technical monitoring records of and information on activities connected with the online trading of goods and the provision of related services as the electronic data evidence for imposing administrative penalties on, or taking administrative measures against, an online merchant or provider of related services that has committed a violation of the law.

Article 45: If a provision of an industry and commerce administration law or set of regulations is violated in the course of activities relating to the online trading of goods or the provision of related services and the circumstances thereof are serious and measures need to be taken to halt the offending website from continuing to commit the illegal activities, the administration for industry and commerce may, in accordance with relevant provisions, request that the telecommunications administration department of the place where the website has been licensed or placed on the record to order in accordance with the law the temporary masking of the offending website or halting the access service thereto.

Article 46: If the administration for industry and commerce, after imposing administrative penalties on a website for a violation of the law, needs to shut down such offending website, it may, in accordance with relevant provisions, request that the telecommunications administration department of the place where the website has been licensed or placed on the record to shut down the offending website in accordance with the law.

Article 47: If, in the course of regulating activities relating to the online trading of goods or the provision of related services, the administration for industry and commerce discovers a violation of the law the investigation and handling of which falls within the purview of another department, its shall transfer such case to the relevant department in accordance with the law.

Article 48: An administration for industry and commerce at the county level or above shall establish a responsibility system for the work associated with the regulation of the online trading of goods and provision of related services, and perform its duties in accordance with the law.

Part Four: Legal liability

Article 49: If laws or regulations provide otherwise in respect of a violation of these Measures, such provisions shall apply.

Article 50: In the event of a violation of the second paragraph of Article 7, Article 23, Article 25, the second paragraph of Article 26, Article 29, Article 30, Article 34, Article 35, Article 36 or Article 38 hereof, a warning shall be issued, an order to rectify the matter shall be given, and if the offender refuses to rectify the matter, a fine of not less than Rmb10,000 and not more than Rmb30,000 shall be imposed.

Article 51: In the event of a violation of Article 8 or Article 21 hereof, a warning shall be issued, an order to rectify the matter shall be given, and if the offender refuses to rectify the matter, a fine of up to Rmb10,000 shall be imposed.

Article 52: In the event of a violation of Article 17 hereof, penalties shall be imposed in accordance with relevant provisions of theMeasures for Monitoring and Dealing with Illegal Acts Related to Contracts.

Article 53: In the event of a violation of Item (1) of Article 19 hereof, penalties shall be imposed in accordance with Article 21 of the Anti-unfair Competition Law; of Item (2) or (4) of Article 19 hereof, penalties shall be imposed in accordance with Article 24 of the Anti-unfair Competition Law; of Item (3) of Article 19 hereof, penalties shall be imposed in accordance with Article 26 of the Anti-unfair Competition Law; or of Item (5) of Article 19 hereof, a warning shall be issued, an order to rectify the matter shall be given and a fine of not less than Rmb10,000 and not more than Rmb30,000 shall be imposed.

Article 54: In the event of a violation of Article 20 hereof, a warning shall be issued, an order to rectify the matter shall be given and a fine of not less than Rmb10,000 and not more than Rmb30,000 shall be imposed.

Part Five: Supplementary provisions

Article 55: For business activities where information on goods or for-profit services is published on a third party trading platform but the transaction process is not directly completed on the platform, the provisions hereof on the administration of the online trading of goods shall apply mutatis mutandis.

Article 56: The State Administration for Industry and Commerce is in charge of interpreting these Measures.

Article 57: Provincial-level administrations for industry and commerce may formulate on the basis hereof implementing guiding opinions for the regulation of the online trading of goods and the provision of related services.

Article 58: These Measures shall be effective as of March 15 2014. The Tentative Measures for the Administration of the Online Trading of Goods and the Provision of Related Services promulgated by the State Administration for Industry and Commerce on May 31 2010 shall be repealed simultaneously.