E-commerce has ‘a serious problem’ of fake advertising
Print Edition
FAKE advertising by e-commerce operators has become a serious problem, Zhang Mingqi, vice director of the National People’s Congress law committee, said yesterday.
He was speaking as the latest draft revision of the Unfair Competition Law was submitted for a third reading at the six-day bimonthly session of the National People’s Congress Standing Committee in Beijing.
The draft stipulates that e-commerce operators should neither deceive nor mislead consumers by faking sales volume or user comments.
“Operators shall not fabricate transactions to help others in commercial promotions,” the draft states.
It redefines unfair competition as that which “violates this law, disturbs market order or infringes on the rights and interests of other operators or consumers during production and operations.”
The draft also states that industrial associations shall uphold market order through self-discipline and by guiding their members to compete in accordance with law.
The revision aims to address new problems emerging in the market, encourage and protect fair competition and protect the rights and interests of both business operators and consumers, Zhang said.
Meanwhile, the latest draft law on e-commerce, submitted for its second reading, further clarifies liabilities of e-commerce operators and punishment over infringement of consumer rights.
The bill classifies e-commerce operators into three entities — “those doing business on their own websites, e-commerce platform operators, and stores on e-commerce platforms.”
E-commerce operators should be registered with the industry and commerce administrations, except for those who sell homegrown farm produce or handmade products and others who by law do not need to be registered.
Operators should not infringe consumers’ rights by posting false advertisements or by fabricating transaction information or user comments.
They should deliver products and services as promised.
Consumers should be informed of how to cancel without unreasonable conditions.
When e-commerce platform operators offer search services for consumers, they may display the results according to indicators such as price, sales volume and credit but the results of “paid listings” should be clearly labeled as advertisements.
Platform operators are also required to respond to intellectual property right violations. They must cancel, block, disconnect or close transactions of business operators who violate IPRs when they are aware of or should be aware of the offenses.
The bill also requires e-commerce operators to establish efficient channels to handle complaints. In disputes, they shall provide original transaction information to the court, arbitration authority and other mediation agencies.
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