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Protecting consumer rights online
January 31, 2011, Monday
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Print Edition
Print Edition
THE boom of e-commerce is making a lot of dreams come true for shoppers who now have such a vast array of products and services at their fingertips.
However, the online trend also brings new headaches for authorities charged with protecting consumers from deception sales practices and illegal transactions.
To foster a sound business environment on the Internet, the State Administration for Industry and Commerce adopted and promulgated the "Tentative Measures for Administration of Online Commodity Trade and Related Service Activities." The measures came into effect last July 1.
Here's a synopsis of the new rules:
Real-Name Business Registration
Any person engaged in commodity trading and relevant service activities through the Internet is required to file an application with the operator providing platform services and provide his or her name, address and other identity information. Real-name business registration is an indispensable part of an e-commerce system.
It is still difficult to levy relevant taxes on all online stores. Although some online shopping websites have complied with real-name registration rules, the information provided is sometimes vague and inadequate. Trafficking in credentials as well as the cession and rental of online stores means that authorities often can't ascertain that a business registration matches the actual person who filed an application or is operating an online store. It takes time and effort to do those investigations.
Commodity trading services
Network operators and online sellers are forbidden from conducting commerce in a manner unfair to consumers or in violation of normally accepted trade practices. They must comply with all laws, regulations and rules governing companies and persons selling goods and commodities through traditional off-line channels.
Security of information
Internet trading platform and business operators shall take all necessary steps to safeguard the personal information of consumers that might be collected in the course of online sales. Details of online transactions shall not be disclosed to any third party. Violators will receive a warning to cease and desist, and if they fail to comply, a fine of 10,000 yuan shall be imposed.
However, the online trend also brings new headaches for authorities charged with protecting consumers from deception sales practices and illegal transactions.
To foster a sound business environment on the Internet, the State Administration for Industry and Commerce adopted and promulgated the "Tentative Measures for Administration of Online Commodity Trade and Related Service Activities." The measures came into effect last July 1.
Here's a synopsis of the new rules:
Real-Name Business Registration
Any person engaged in commodity trading and relevant service activities through the Internet is required to file an application with the operator providing platform services and provide his or her name, address and other identity information. Real-name business registration is an indispensable part of an e-commerce system.
It is still difficult to levy relevant taxes on all online stores. Although some online shopping websites have complied with real-name registration rules, the information provided is sometimes vague and inadequate. Trafficking in credentials as well as the cession and rental of online stores means that authorities often can't ascertain that a business registration matches the actual person who filed an application or is operating an online store. It takes time and effort to do those investigations.
Commodity trading services
Network operators and online sellers are forbidden from conducting commerce in a manner unfair to consumers or in violation of normally accepted trade practices. They must comply with all laws, regulations and rules governing companies and persons selling goods and commodities through traditional off-line channels.
Security of information
Internet trading platform and business operators shall take all necessary steps to safeguard the personal information of consumers that might be collected in the course of online sales. Details of online transactions shall not be disclosed to any third party. Violators will receive a warning to cease and desist, and if they fail to comply, a fine of 10,000 yuan shall be imposed.
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