PRC Electronic Commerce Law

 

 

(Adopted at the 5th Session of the Standing Committee of the 13th National People's Congress on August 31, 2018 and effective as of January 1, 2019.)

 

PRC President's Order (No.7 of the 13th NPC)

 

Part One: General Provisions

 

Article 1:        This Law has been formulated in order to ensure the lawful rights and interests of the various subjects involved in electronic commerce, regulate E-commerce acts, safeguard market order and promote the sustainable and healthy development of E-commerce.

 

Article 2:        This Law shall govern electronic commerce activities in the People's Republic of China.

 

For the purposes of this Law, the term “electronic commerce” (E-commerce) means the business activity of selling merchandise or offering services through an information network such as the internet.

 

If laws or administrative regulations provide in respect of the sale of merchandise or the offering of services, such provisions shall apply. This Law shall not apply to financial products and services or to the use of information networks to offer services involving contents such as news information, audio and video programs, publication and cultural products.

 

Article 3:        The state encourages the development of new forms of E-commerce, the creation of innovative business models, the promotion of the research, development, promotion and application of E-commerce technologies, the boosting of the development of an E-commerce integrity system, the fostering of a market environment conducive to the innovative development of E-commerce, and the full utilization of E-commerce's important role in promoting high quality development, satisfaction of people's increasing demand for the good life and creation of an open economy.

 

Article 4:        The state treats both online and offline business activities equally, promotes integrated online-offline development, and no people's government at any level or its relevant agencies may take discriminatory policy measures or abuse their administrative power to eliminate or restrict market competition.

 

Article 5:        In engaging in business activities, an E-commerce operator shall abide by the principles of free will, equality, fairness and good faith, comply with laws and commercial ethics, participate in market competition in a fair manner, perform its obligations relating to the protection of consumers' rights and interests, environmental protection, intellectual property protection, cybersecurity and protection of personal information, bear liability for the quality of its products and services, and submit to the scrutiny of the government and the public.

 

Article 6:        The relevant departments of the State Council shall be responsible for work such as promoting the development of and overseeing E-commerce based on the division of their responsibilities. Local people's governments at the county level and above may, based on the actual circumstances in their administrative regions, determine the division of the responsibilities for E-commerce of their agencies within their administrative regions.

 

Article 7:        The state will establish a collaborative administration system congruent with the features of E-commerce and promote the formation of an E-commerce market governance system in which relevant authorities, E-commerce industry organizations, E-commerce operators and consumers jointly participate.

 

Article 8:        An E-commerce industry organization shall carry out industry self-regulation in accordance with its charter, establish and improve an industry code, promote the development of industry integrity, and monitor and guide business operators in its industry in participating fairly in market competition.

 

Part Two: E-commerce Operators

 

Section One: General Provisions

 

Article 9:        For the purposes of this Law, the term “E-commerce operator” means a natural person, legal person or non-legal-person organization that engages in the business activity of selling merchandise or offering services through an information network such as the internet, and includes E-commerce platform operators, platform merchants and E-commerce operators that sell merchandise or offer services through their own website or other online services.

 

For the purposes of this Law, the term “E-commerce platform operator” means a legal person or non-corporate organization that provides, in the course of E-commerce, services such as online business premises, transaction intermediation and information dissemination to the parties of a transaction so that such parties can independently conduct their trading activities.

 

For the purposes of this Law, the term “platform merchant” means an E-commerce operator that sells merchandise or offers services on an E-commerce platform.

 

Article 10:      An E-commerce operator shall carry out market subject registration in accordance with the law, save for individuals who sell agricultural byproducts produced by themselves or homemade handicraft products, individuals who use their own skills to engage in service activities for the convenience of people without requiring, in accordance with the law, a permit, or random small-scale trading activities, or where registration is not required in accordance with laws or administrative regulations.

 

Article 11:      An E-commerce operator shall perform his/her/its tax payment obligations and be eligible for tax breaks in accordance with the law.

 

An E-commerce operator that, pursuant to the preceding article, is not required to carry out market subject registration shall, once his/her/its first tax payment obligation arises, carry out tax registration in accordance with laws and administrative regulations on the levy administration of taxes and truthfully file and pay his/her/its taxes.

 

Article 12:      Where an E-commerce operator is required, in accordance with the law, to secure relevant administrative permissions to engage in business activities, he/she/it shall secure such administrative permissions in accordance with the law.

 

Article 13:      The merchandise sold or the services offered by an E-commerce operator shall satisfy requirements on ensuring the safety of the person and property and on environmental protection, and he/she/it may not sell or offer merchandise or services the dealing of which is prohibited by laws or administrative regulations.

 

Article 14:      In selling merchandise or offering services, an E-commerce operator shall issue proof of purchase or service document such as a hard copy or electronic invoice, etc. in accordance with the law. Electronic invoices shall have the same legal force and effect as hard copy invoices.

 

Article 15:      An E-commerce operator shall continuously display information such as the information on his/her/its business license, the information on the administrative permissions relating to the business in which he/she/it is engaging and information to the effect that he/she/it is not required to carry out market subject registration in accordance with Article 10 hereof or a link to such information in a prominent location on his/her/its home page.

 

If a change in the information mentioned in the preceding paragraph occurs, the E-commerce operator shall update the information displayed in a timely manner.

 

Article 16:      If an E-commerce operator is to cease engaging in E-commerce of his/her/its own volition, he/she/it shall continuously display the relevant information in a prominent location on his/her/its home page 30 days in advance.

 

Article 17:      An E-commerce operator shall comprehensively, truthfully and accurately disclose information on his/her/its merchandise or services in a timely manner so as to ensure consumers' right to information and right to choice. An E-commerce operator may not engage in fraudulent or misleading commercial publicity through means such as fake transactions or fabricated user comments to defraud or mislead consumers.

 

Article 18:      Where an E-commerce operator provides search results on merchandise or services based on traits of a consumer such as his/her interests and consumption habits, he/she/it shall additionally provide him/her choices that are not a reflection of his/her personal traits, and respect and protect in a non-discriminatory manner consumers' lawful rights and interests.

 

If an E-commerce operator sends advertising to consumers, he/she/it shall comply with relevant provisions of the PRC Advertising Law.

 

Article 19:      If an E-commerce operator is to tie in the sale of merchandise or a service, he/she/it shall bring the same to consumers' attention in a conspicuous manner and may not treat the tied-in merchandise or service as an option for which tacit consent has been given.

 

Article 20:      An E-commerce operator shall deliver the merchandise or service to the consumer by the method and time undertaken or agreed to with the consumer, and bear the risks and liability arising in the course of the transport of the merchandise, unless the consumer otherwise opts for an expedited logistics service provider.

 

Article 21:      If an E-commerce operator charges consumers a deposit as specified, he/she/it shall expressly indicate the method of, and procedure for, refund of the deposit, and may not set unreasonable conditions for the refund of the deposit. When a consumer applies for a refund of his/her deposit, the E-commerce operator shall refund the same in a timely manner if the conditions for the refund of the same are satisfied.

 

Article 22:      If an E-commerce operator has a dominant market position due to factors such as its technical advantages, number of users, its capacity to control the relevant industry or the degree of reliance on it by other business operators for their trading, it may not abuse such dominant market position to eliminate or restrict competition.

 

Article 23:      An E-commerce operator that collects and uses the personal information of his/her/its users shall comply with the provisions of laws and administrative regulations on the protection of personal information.

 

Article 24:      An E-commerce operator shall clearly indicate the method and procedure by which user information can be reviewed, corrected or deleted and by which users can deregister, and may not set unreasonable conditions for the review, correction or deletion of user information or the deregistration of users.

 

When an E-commerce operator receives an application for the review, correction or deletion of user information, it shall, in a timely manner, provide review of, or correct or delete the user information once it has verified the applicant's identity. When a user deregisters, the E-commerce operator shall promptly delete the user's information or, if preservation of the same is required in accordance with laws, administrative regulations or the agreement between the parties, it shall comply with such provisions.

 

Article 25:      If a relevant competent department requests in accordance with laws and administrative regulations that an E-commerce operator provide E-commerce related data and information, the E-commerce operator shall provide the same. The relevant competent department shall take necessary measures to protect the security of the data and information provided by the E-commerce operator, strictly keep confidential the personal information, private matters and trade secrets contained therein, and may not disclose, sell or illegally provide the same to a third party.

 

Article 26:      An E-commerce operator that engages in cross-border E-commerce shall comply with laws, administrative regulations and relevant state provisions on the regulation of imports and exports.

 

Section Two: E-commerce Platform Operators

 

Article 27:      An E-commerce platform operator shall require a business operator that applies to enter its platform to sell merchandise or offer services to submit true information, such as its identity, address, contact information and administrative permissions, verify and record the same, open a registration file therefor and regularly verify and update the same.

 

An E-commerce platform operator that provides services to non-profit users that enter its platform to sell merchandise or offer services shall comply with the relevant provisions set forth in this Section.

 

Article 28:      An E-commerce platform operator shall submit the identification information of platform merchants to the market regulator in accordance with provisions, remind business operators that have not carried out market subject registration to do so in accordance with the law, cooperate with the market regulator and, in respect of the particular features of E-commerce, provide to business operators that are required to carry out market subject registration the facilitating conditions to do so.

 

An E-commerce platform operator shall submit the identification information and tax-related information of platform merchants to tax authorities in accordance with laws and administrative regulations on the levy administration of taxes, and remind E-commerce operators that are not required to carry out market subject registration in accordance with Article 10 hereof to carry out tax registration in accordance with the second paragraph of Article 11 hereof.

 

Article 29:      If an E-commerce platform operator discovers that information on merchandise or a service on its platform violates Article 12 or 13 hereof, it shall take the necessary measures to deal with the same in accordance with the law and report the same to the relevant competent department.

 

Article 30:      An E-commerce platform operator shall take technical measures and other necessary measures to ensure the secure and stable operation of its network, prevent illegal and criminal activities online, effectively respond to cybersecurity related events and ensure the security of E-commerce transactions.

 

An E-commerce platform operator shall formulate a contingency plan for cybersecurity-related events, and when such an event occurs, it shall promptly put the contingency plan into motion, take the relevant remedial measures and report the same to the relevant competent department.

 

Article 31:      An E-commerce platform operator shall make a record of and preserve merchandise and service information and transaction information published on its platform and ensure the integrity, confidentiality and usability of such information. Merchandise and service information and transaction information shall be preserved for at least three years from the date of completion of a transaction, unless otherwise provided in laws or administrative regulations, in which case such provisions shall be complied with.

 

Article 32:      An E-commerce platform operator shall abide by the principles of openness, fairness and impartiality, formulate a platform service agreement and trading rules, and expressly specify the rights and obligations relating to the entry onto and withdrawal from the platform, merchandise and service quality assurance, protection of the rights and interests of consumers, protection of personal information, etc.

 

Article 33:      An E-commerce platform operator shall continuously display information on the platform service agreement and its trading rules, or a link thereto, in a prominent location on its home page and ensure that business operators and consumers can conveniently review and download the same in full.

 

Article 34:      When an E-commerce platform operator wishes to amend the platform service agreement or its trading rules, it shall seek public comments thereon in a prominent location on its home page and take reasonable measures to ensure that relevant parties can fully express their opinions in a timely manner. The revised provisions shall be displayed for at least seven days before implementation.

 

If a platform merchant does not accept the revised provisions and requests withdrawal from the platform, the E-commerce platform operator may not prevent the platform merchant from doing so and shall bear relevant liability in accordance with the pre-amended service agreement and trading rules.

 

Article 35:      An E-commerce platform operator may not use means such as the service agreement, trading rules or technologies to unreasonably restrict or impose unreasonable conditions on the transactions conducted on the platform by, the transaction prices of, or transactions with other business operators by platform merchants or charge platform merchants unreasonable fees.

 

Article 36:      Where an E-commerce platform operator takes, in accordance with the platform service agreement and trading rules, measures such as giving a warning or suspending or terminating the provision of services to a platform merchant for violating a law or a set of regulations, it shall post the same in a timely manner.

 

Article 37:      If an E-commerce platform operator conducts business for its own account on its platform, it shall conspicuously mark its own business and the business conducted by platform merchants to distinguish the two, and may not mislead consumers.

 

An E-commerce platform operator shall bear the civil liability of a merchandise seller or service provider in accordance with the law in respect of the business marked as being conducted for its own account.

 

Article 38:      If an E-commerce platform operator knows or ought to have known that the goods sold or services offered by a platform merchant do not satisfy the requirements of ensuring the safety of the person or property or otherwise infringe the lawful rights and interests of consumers and fails to take necessary measures, it shall, in accordance with the law, bear joint and several liability with the platform merchant.

 

With respect to merchandise or services that impact the life or health of consumers, if an E-commerce platform operator fails to perform its obligation of reviewing the qualifications of a Platform Operator or fails to perform its safety assurance obligations in respect of consumers, causing harm to consumers, it shall bear the attendant liability in accordance with the law.

 

Article 39:      An E-commerce platform operator shall establish and improve an integrity assessment system, post its integrity assessment rules and provide consumers means to comment on the merchandise sold and the services offered on its platform.

 

An E-commerce platform operator may not delete comments made by consumers on the merchandise sold or the services offered on its platform.

 

Article 40:      An E-commerce platform operator shall use multiple methods to display to consumers search results on merchandise or services based on the price, sales volume, reliability, etc. of such merchandise or services. With respect to merchandise or services displayed by paid ranking, it shall conspicuously mark the same with the word “advertisement”.

 

Article 41:      An E-commerce platform operator shall establish intellectual property protection rules, strengthen cooperation with intellectual property rights holders and protect intellectual property in accordance with the law.

 

Article 42:      If an intellectual property rights holders contends that its intellectual property rights have been infringed, it shall have the right to notify the E-commerce platform operator to take necessary measures such as deletion, masking, severing of the links or termination of trading and services. Such notice shall include preliminary evidence of infringement being constituted.

 

Once it has received the notice, the E-commerce platform operator shall take the necessary measures in a timely manner and forward the notice to the platform merchant. If it fails to take the necessary measures in a timely manner, it shall bear joint and several liability with the platform merchant for the additional damage.

 

Civil liability shall be borne in accordance with the law for damage incurred by a platform merchant as the result of an erroneous notice. If an erroneous notice is issued in bad faith, causing a platform merchant to incur a loss, the compensation borne shall be doubled.

 

Article 43:      After receipt of the forwarded notice, the platform merchant may submit to the E-commerce platform operator a statement to the effect that he/she/it has not committed infringement. The statement shall include preliminary evidence that no infringement was committed.

 

After receipt of the statement, the E-commerce platform operator shall forward the same to the intellectual property rights holder that issued the notice and inform it that it can lodge a complaint with the relevant competent department or institute a legal action in a people's court. If the E-commerce platform operator does not receive notice of the intellectual property rights holder having lodged a complaint or instituted a legal action within 15 days after the forwarded statement reaching the rights holder, it shall, in a timely manner, terminate the measures that it took.

 

Article 44:      An E-commerce platform operator shall promptly post the notices and statements specified in Articles 42 and 43 hereof received by it and the outcome of its handling.

 

Article 45:      If an E-commerce platform operator knows or ought to have known that a platform merchant has infringed intellectual property, it shall take necessary measures such as deletion, masking, severing of the links or terminating the trading and services. If it fails to take such measures, it shall bear joint and several liability with the infringer.

 

Article 46:      In addition to the services specified in the second paragraph of Article 9 hereof, an E-commerce platform operator may, in accordance with the platform service agreement and trading rules, provide services for the E-commerce between business operators such as warehousing, logistics, payment and settlement, and delivery and receipt. In providing services for the E-commerce between business operators, an E-commerce platform operator shall comply with laws, administrative regulations and relevant state provisions, may not carry out centralized means of trading such as centralized bidding and market making, and may not carry out standardized contract transactions.

 

Part Three: Conclusion and Performance of E-commerce Contracts

 

Article 47:      The conclusion and performance of contracts between E-commerce parties shall be governed by this Part and laws such as the PRC General Provisions of the Civil Law, the PRC Contract Law and the PRC Electronic Signature Law.

 

Article 48:      The act by E-commerce parties to use an automatic information system to enter into or perform contracts shall be legally binding on parties that use such system.

 

In E-commerce, the parties shall be assumed to have the pertinent civil capacity for acts, unless there is counter evidence sufficient to disprove the same.

 

Article 49:      If the merchandise or service information published by an E-commerce operator satisfies offer conditions, and a user selects such merchandise or service and successfully submits an order, the contract shall be formed, unless the parties provide otherwise, in which case such provisions shall be complied with.

 

An E-commerce operator may not specify by means of standard terms that a contract is not formed once the consumer has made payment. If standard terms contain such a provision, such provision shall be invalid.

 

Article 50:      An E-commerce operator shall clearly, completely and expressly inform users about matters such as the steps for concluding a contract, the matters to note and the download method, and ensure that users can conveniently review and download the same.

 

An E-commerce operator shall ensure that users can correct input errors before submitting an order.

 

Article 51:      If the subject matter of a contract is the delivery of merchandise and the same is to be delivered by expedited logistics, the time at which the consignee signs in receipt shall be the time of delivery. If the subject matter of a contract is the provision of a service, the time indicated on the generated electronic voucher or the physical voucher shall be the time of delivery. If such a voucher does not indicate the time or the indicated time is inconsistent with the time at which the service is actually provided, the time at which the service is actually provided shall be the delivery date.

 

If the subject matter of a contract is delivered by online transmission, the time at which the subject matter of the contract enters the counterparty's designated specific system and can be searched and identified, shall be the time of delivery.

 

If the parties to a contract provide otherwise in respect of the method or time of delivery, such provisions shall be complied with.

 

Article 52:      E-commerce parties may agree on the delivery of merchandise by expedited logistics.

 

In providing expedited logistics services for E-commerce, an expedited logistics service provider shall comply with laws and administrative regulations and shall adhere to the service code and deadlines committed to. When delivering merchandise, the expedited logistics service provider shall remind the consignee to carry out an inspection on the spot; acceptance of delivery by a third party shall require the consent of the consignee.

 

An expedited logistics service provider shall use environmentally friendly packaging materials in accordance with provisions, and realize the reduction and reuse of such packaging materials.

 

While providing expedited logistics services, an expedited logistics service provider may accept the entrustment of the E-commerce operator to provide payment collection services.

 

Article 53:      E-commerce parties may agree upon payment by electronic payment.

 

An electronic payment service provider providing electronic payment services for E-commerce shall comply with state provisions, inform users of matters such as the electronic payment service functions, method of use, matters to note, relevant risks and charge rates, and may not impose unreasonable transaction conditions. An electronic payment service provider shall ensure the integrity, consistency, traceability and tamper proofing of electronic payment instructions.

 

An electronic payment service provider shall provide to users account review services and a record of transactions for the last three years free of charge.

 

Article 54:      If, in providing electronic payment services, an electronic payment service provider fails to comply with state requirements for the administration of payment security, causing a user to incur a loss, it shall be liable for compensation.

 

Article 55:      Before issuing a payment instruction, a user shall check the integrity of information such as the amount and payee contained in his/her payment instruction.

 

If an error in a payment instruction occurs, the electronic payment service provider shall ascertain the reason and take the relevant measures to rectify the same in a timely manner. If a user incurs a loss, the electronic payment service provider shall be liable for compensation, unless it is able to show that the payment error was not caused by a reason attributable to it.

 

Article 56:      Once an electronic payment service provider completes an electronic payment, it shall, in a timely manner, accurately provide to the user payment confirmation information complying with the specified method.

 

Article 57:      A user shall duly keep his/her security tools, such as transaction password and electronic signature data. If a user discovers the loss or theft of his security tools or an unauthorized payment, he or she shall notify the electronic payment service provider thereof in a timely manner.

 

The loss incurred as the result of an unauthorized payment shall be borne by the electronic payment service provider. If the electronic payment service provider is able to show that the reason for the unauthorized payment is attributable to the fault of the user, it shall not be liable therefor.

 

If an electronic payment service provider discovers that a payment instruction has not been authorized or receives notice from a user that a payment instruction was not authorized, it shall promptly take measures to prevent the loss from escalating. If the electronic payment service provider fails to promptly take measures, resulting in escalation of the loss, it shall be liable for the additional loss.

 

Part Four: Resolution of E-commerce Disputes

 

Article 58:      The state encourages E-commerce platform operators to establish merchandise and service quality assurance mechanisms that are conducive to the development of E-commerce, and the protection of consumer rights and interests.

 

If an E-commerce platform operator agrees with platform merchants to establish deposits for consumer rights and interests, the parties shall set forth clear provisions on the amount to be allocated to, and the method of managing, using and refunding the deposits for consumer rights and interests.

 

Relevant provisions of the PRC Law on the Protection of the Rights and Interests of Consumers shall govern the demand by a consumer that an E-commerce platform operator first bear the compensation and the recovery thereof from the platform merchant after the payment of compensation by the E-commerce platform operator.

 

Article 59:      An E-commerce operator shall establish a convenient and effective complaint and reporting mechanism, disclose information such as the method of lodging complaints and submitting reports, and accept and deal with complaints and reports in a timely manner.

 

Article 60:      E-commerce disputes may be resolved by means such as consultation and settlement, requesting mediation by a consumer organization, industry association or other mediation organization established in accordance with the law, lodging a complaint with a relevant authority, submission for arbitration or institution of a legal action.

 

Article 61:      When a dispute arises between a consumer who has purchased merchandise or received a service on an E-commerce platform and a platform merchant, the E-commerce platform operator shall actively assist the consumer in safeguarding his/her lawful rights and interests.

 

Article 62:      In the handling of an E-commerce dispute, the E-commerce operator shall provide the original contract and transaction record. If the people's court, arbitration institution or relevant authority is unable to ascertain the facts due to the loss, fabrication, alteration, destruction, concealment or refusal to provide the aforementioned information by the E-commerce operator, the E-commerce operator shall bear the attendant legal liability.

 

Article 63:      An E-commerce platform operator may establish a mechanism for the online resolution of disputes, formulate and post the dispute resolution rules and, based on the principle of free will, fairly and impartially resolve disputes between parties.

 

Part Five: Promotion of E-commerce

 

Article 64:      The State Council and people's governments of the provinces, autonomous regions and municipalities directly under the central government shall incorporate the development of E-commerce into national economic and social development plans, formulate objective and reasonable industry policies and promote the innovative development of E-commerce.

 

Article 65:      The State Council and local people's governments at the county level and above and their relevant departments shall take measures to support and promote environmentally friendly packaging, warehousing and transport, and promote environmentally friendly development of E-commerce.

 

Article 66:      The state promotes the development of E-commerce infrastructure and logistics networks and will improve the system for keeping statistics on E-commerce and strengthen the development of an E-commerce standards system.

 

Article 67:      The state promotes the application of E-commerce in various sectors of the national economy and supports the integrated development of E-commerce and various industries.

 

Article 68:      The state promotes the application of internet technologies in agricultural production, processing and logistics, encourages various public resources to strengthen cooperation and promotes the development of rural E-commerce so as to leverage the function of E-commerce to precisely target poverty alleviation.

 

Article 69:      The state safeguards the security of E-commerce transactions, protects the information of E-commerce users, encourages the development and application of E-commerce data and ensures that E-commerce data flows freely in a lawful and orderly manner.

 

The state takes measures to promote the establishment of a public data sharing mechanism and promote the lawful use of public data by E-commerce operators.

 

Article 70:      The state supports the conduct of E-commerce integrity assessments and the provision to the public of E-commerce integrity assessment services by lawfully established integrity assessment institutions.

 

Article 71:      The state promotes the development of cross-border E-commerce, will establish and improve customs, tax, entry-exit inspection and quarantine, and payment and settlement administration systems, etc. consistent with the specific characteristics of cross-border E-commerce, enhance the level of convenience at each stage of cross-border E-commerce and support the provision of services such as warehousing, logistics, customs declaration and submission for inspection by cross-border E-commerce platform operators for cross-border E-commerce.

 

The state supports the engagement in cross-border E-commerce by micro and small enterprises.

 

Article 72:      The state's department responsible for import and export administration shall promote the development of comprehensive services and a regulatory system for stages of cross-border E-commerce such as customs declaration, payment of duties and taxes, inspection and quarantine, optimize the oversight procedures, promote the realization of information sharing, mutual recognition of regulation and mutual assistance in law enforcement and enhance the efficiency of cross-border E-commerce services and regulation. A cross-border E-commerce operator may carry out relevant procedures with the state's department responsible for import and export administration on the strength of electronic documents.

 

Article 73:      The state promotes the establishment with different countries and regions of exchanges and cooperation in cross-border E-commerce, participates in the formulation of international rules for E-commerce and promotes the mutual recognition internationally of electronic signatures, electronic identities, etc.

 

The state promotes the establishment with different countries and regions of mechanisms for the resolution of cross-border E-commerce disputes.

 

Part Six: Legal Liability

 

Article 74:      If, in selling merchandise or offering services, an E-commerce operator fails to perform its contractual obligations, or its performance thereof does not comply with the provisions or it causes a third party to suffer damage, it shall bear civil liability in accordance with the law.

 

Article 75:      If an E-commerce operator violates Article 12 or 13 hereof by engaging in business activities without securing the relevant administrative permissions, or selling or offering merchandise or services the trading of which is prohibited by laws or administrative regulations, or fails to perform its obligation of providing information as specified in Article 25 hereof, or an E-commerce platform operator violates Article 46 hereof by engaging in trade by a centralized trading method or carrying out trading with standard contracts, it shall be subjected to imposition of penalties in accordance with relevant laws and administrative regulations.

 

Article 76:      If an E-commerce operator violates this Law by committing any of the acts set forth below, the market regulator shall order it to rectify the matter within a specified period of time, and may fine it up to Rmb10,000 and penalize the E-commerce platform operator in accordance with the first paragraph of Article 81 hereof:

 

(1)       failing to display its business license information, administrative permission information or information to the effect that it is not required to carry out market subject registration, or a link to such information, in a prominent location on its home page;

 

(2)       failing to display in a continuous manner in a prominent location on its home page information relating to the termination of its E-commerce business; or

 

(3)       failing to expressly indicate the method and procedure by which user information can be reviewed, corrected or deleted or by which users can deregister, or setting unreasonable conditions for the review, correction or deletion of user information or the deregistration of users.

 

If an E-commerce platform operator fails to take necessary measures against a platform merchant that violates the preceding paragraph, the market regulator shall order it to rectify the matter within a specified period of time and may fine it not less than Rmb20,000 and not more than Rmb100,000.

 

Article 77:      If an E-commerce operator violates the first paragraph of Article 18 hereof in providing search results or violates Article 19 hereof in tying in merchandise or a service, the market regulator shall order it to rectify the matter within a specified period of time, forfeit its illegal income and may fine it not less than Rmb50,000 and not more than Rmb200,000; if the circumstances are serious, it shall fine it not less than Rmb200,000 and not more than Rmb500,000.

 

Article 78:      If an E-commerce operator violates Article 21 hereof by failing to expressly indicate to consumers the method and procedure for refunding the deposit, setting unreasonable conditions for the refund of the deposit or failing to refund such deposit in a timely manner, the relevant competent department shall order it to rectify the matter within a specified period of time and may fine it not less than Rmb50,000 and not more than Rmb200,000; if the circumstances are serious, it shall fine it not less than Rmb200,000 and not more than Rmb500,000.

 

Article 79:      If an E-commerce operator violates provisions of laws or administrative regulations on the protection of personal information or fails to perform its obligation of ensuring cybersecurity in accordance with Article 30 hereof and relevant laws and administrative regulations, penalties shall be imposed in accordance with laws and administrative regulations such as the PRC Cybersecurity Law.

 

Article 80:      If an E-commerce platform operator commits any of the acts set forth below, the relevant competent department shall order it to rectify the matter within a specified period of time; if it fails to do so, it shall be fined not less than Rmb20,000 and not more than Rmb100,000; if the circumstances are serious, it shall be ordered to suspend operations and undergo rectification, and fined not less than Rmb100,000 and not more than Rmb500,000:

 

(1)       it fails to perform its verification and recording obligations specified in Article 27 hereof;

 

(2)       it fails to submit relevant information to the market regulator or tax departments in accordance with Article 28 hereof;

 

(3)       it fails to take necessary handling measures against a violation of the law or fails to report the same to the relevant competent department in accordance with Article 29 hereof; or

 

(4)       it fails to perform its obligation of preserving merchandise and service information or transaction information specified in Article 31 hereof.

 

If laws or administrative regulations provide otherwise in respect of the penalties for the violations of the law set forth in the preceding paragraph, such provisions shall be complied with.

 

Article 81:      If an E-commerce platform operator violates this Law by committing any of the acts set forth below, the market regulator shall order it to rectify the matter within a specified period of time and may fine it not less than Rmb20,000 and not more than Rmb100,000; if the circumstances are serious, it shall fine it not less than Rmb100,000 and not more than Rmb500,000:

 

(1)       it fails to continuously display information on the platform service agreement or its trading rules or a link to such information in a prominent location on its home page;

 

(2)       when revising its trading rules, it fails to seek public comments in a prominent location on its home page, fails to post in advance the revised provisions by the time specified or it prevents the withdrawal of a platform merchant;

 

(3)       it fails to conspicuously mark the business it operates for its own account and the business engaged in by platform merchants to distinguish the two; or

 

(4)       it fails to provide consumers means to comment on the merchandise sold or services offered on the platform or deletes consumer comments without authorization.

 

If an E-commerce platform operator violates Article 40 hereof by failing to conspicuously mark merchandise or services displayed by paid ranking with the word “advertisement”, it shall be subjected to imposition of penalties in accordance with the PRC Advertising Law.

 

Article 82:      If an E-commerce platform operator violates Article 35 hereof by unreasonably restricting or imposing unreasonable conditions on the transactions conducted on the platform by, the transaction prices of or the transactions with other business operators by platform merchants, etc., or by charging platform merchants unreasonable fees, the market regulator shall order it to rectify the matter within a specified period of time and may fine it not less than Rmb50,000 and not more than Rmb500,000; if the circumstances are serious, it shall fine it not less than Rmb500,000 and not more than Rmb2,000,000.

 

Article 83:      If an E-commerce platform operator violates Article 38 hereof by failing to take the necessary measures when a platform merchant infringes the lawful rights and interests of consumers, or fails to perform its obligation of reviewing the qualifications of platform merchants, or fails to perform its obligation of ensuring the security of consumers, the market regulator shall order it to rectify the matter within a specified period of time and may fine it not less than Rmb50,000 and not more than Rmb500,000; if the circumstances are serious, it shall order it to suspend operations and undergo rectification and fine it not less than Rmb500,000 and not more than Rmb2,000,000.

 

Article 84:      If an E-commerce platform operator violates Article 42 or 45 hereof by failing to take in accordance with the law the necessary measures against a platform merchant that infringes intellectual property rights, the relevant intellectual property administrative department shall order it to rectify the matter within a specified period of time; if it fails to do so, the relevant intellectual property administrative department shall fine it not less than Rmb50,000 and not more than Rmb500,000; if the circumstances are serious, it shall fine it not less than Rmb500,000 and not more than Rmb2,000,000.

 

Article 85:      If an E-commerce operator violates this Law by selling merchandise or offering services that fail to comply with requirements on ensuring the safety of the person or property, carries out acts of unfair competition, such as carrying out fraudulent or misleading commercial publicity, abuses its dominant market position or commits an act such as infringing intellectual property rights or infringing consumers' rights and interests, penalties shall be imposed in accordance with relevant laws.

 

Article 86:      If an E-commerce operator commits any of the violations of the law specified herein, the same shall be recorded in its integrity file and made public in accordance with relevant laws and administrative regulations.

 

Article 87:      If a member of the working personnel of a department that is charged in accordance with the law with the duty to oversee E-commerce is derelict in his/her duties, abuses his/her authority, practices favoritism or commits irregularities, or discloses, sells or illegally provides to a third party personal information, private matters or trade secrets learned in the course of performing his/her duties, his/her legal liability shall be pursued in accordance with the law.

 

Article 88:      If a violation of this Law constitutes a violation of public security administration, public security administration penalties shall be imposed in accordance with the law; if it constitutes a criminal offense, criminal liability shall be pursued in accordance with the law.

 

Part Seven: Supplementary Provisions

 

Article 89:      This Law shall be effective as of January 1, 2019.