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SAIC to Crack Down on Online Marketplace Malpractices

China's State Administration for Industry and Commerce (SAIC) announced an action plan for supervision of online marketplaces on 5 May in a bid to crack down on illegal activities related to e-commerce platforms, online trademark infringement, sale of counterfeit and shoddy goods, false advertisements and click farming in a campaign from May to November.

Infringement and counterfeiting is one of the malpractices in the online marketplace. Under the plan, efforts will be stepped up to monitor online sale of counterfeit well-known trademarks and foreign-related brand-name merchandise. Illegal activities related to the abuse, passing-off and counterfeiting of agricultural products will be investigated.

Statutory duties and responsibilities of the e-commerce platforms are proposed. The credentials of third-party merchants seeking to operate through their respective platform are to be inspected, registered, and made public. The merchants’ access to and exit from the e-commerce platform, the quality and safety of goods and services offered, as well as consumer rights and protection are to be stipulated in the agreements with the merchants. Industry and commerce administration department and market supervision department will ensure the platform operators carry out self-checking and self-rectification conscientiously.

The plan calls for implementation of the real-name system to regulate the main operating entities of e-commerce platforms. Key products under supervision in the campaign include goods for children and elderly, electrical and electronic products, home decoration materials, automotive accessories, apparels and fertilisers.

Content provided by Picture: HKTDC Research
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