China Enhances E-commerce Regulations to Safeguard Consumers and Counteract Fake Products
China’s e-commerce landscape is on the cusp of transformation, with a slew of fresh regulations poised to debut in March.
With a trajectory that saw the e-commerce industry skyrocket from a valuation of $3 billion in 2009 to $64 billion by 2012, millions in China have embraced online shopping, reports the South China Morning Post.
As 2013 marked China’s ascent as the second largest global online retail market, and with expectations of the BtoC segment witnessing a 34% annual growth rate over the coming half-decade, Beijing is stepping up its regulatory oversight—a move previously lacking in momentum.
From March onwards, consumers will benefit from more power in their online transactions. The updated regulations will allow for a hassle-free return of products within a week of purchase, given that they remain in a satisfactory state. Notably, this flexibility doesn’t apply to personalized items and perishable goods.
Claudio de Bedin, an attorney counseling European clients on tapping into the Chinese market, commented on the new directive, stating, “With e-commerce in China experiencing a significant surge, this legislation is timely. The ubiquity of online shopping, even during work breaks, necessitates stricter oversight. Retailers must now be vigilant about the products they offer, ensuring they don’t harm consumers. After all, they wouldn’t want the financial setbacks that come with returned merchandise.”
Another pivotal regulation mandates sellers to disclose their full names and addresses. This facilitates legal proceedings against those peddling counterfeit goods. Online giants like Alibaba’s Taobao.com are now responsible for ensuring that vendors list their contact details for consumers on their platforms.
Although these rules might pose challenges for e-commerce platforms, grappling with widespread counterfeit issues, they are deemed essential in standardizing online market practices. As highlighted by the South China Morning Post, “Our stringent entry norms for certification set us apart from competitors.”
