The Regulations make special provisions for prepaid consumption, live streaming sales, and other fields to comprehensively increase the protection of consumer rights and interests

2024-04-10

The Implementation Regulations of the Consumer Rights Protection Law of the People's Republic of China (hereinafter referred to as the "Regulations") were recently announced and will officially come into effect from July this year, strengthening the legal protection for promoting the construction of the consumer environment on the new journey. On April 9th, the State Council Information Office held a routine briefing on State Council policies to introduce relevant information. Liu Jun, Deputy Director of the State Administration for Market Regulation, introduced that the Regulations have five highlights. We have comprehensively increased the protection of consumer rights such as security, information, independent choice, fair trade, peace of mind, and personal information. This is not only a guarantee of rights, but also a guide for action. As a fundamental and comprehensive general law, all business activities in various fields must comply with its provisions; As a special law that focuses on protecting consumers, the rules and regulations of various industries must comply with its spirit. Special regulations have been made for new areas and issues such as prepaid consumption, live streaming sales, "one old and one small", "domineering terms", "brushing orders and speculation", "big data killing", automatic renewal, and mandatory bundling. Improve mechanisms such as pre settlement, administrative mediation, and diversified resolution of consumer disputes, to resolve more disputes at the source and eliminate them in their early stages. Strengthen social supervision and credit constraints, better leverage the role of consumers and consumer associations, while clearly opposing abuse of rights and malicious rights protection. Prohibiting platforms from "brushing orders to speculate", "mandatory bundling", and "big data killing", standardizing "automatic renewal", and ensuring "no reason for return". As of the end of last year, China's online shopping users exceeded 900 million, online travel booking users exceeded 500 million, and the online retail sales of physical goods accounted for 27.6% of the total retail sales of consumer goods in society. At the same time, related demands have also grown rapidly. Last year, online consumption demands accounted for 56% of all demands, more than half, becoming an important factor affecting consumer satisfaction. Liu Jun introduced that the Regulations have made a series of new provisions to better protect consumers' right to information and choice in response to the problems existing in online consumption. Prohibit "brushing orders and speculation". Some operators engage in behaviors such as bulk likes, false seeding, fictional evaluations, positive reviews cashback, and deletion of negative reviews, which harm fair competition and fair transactions. The Regulations stipulate that operators shall not fabricate transaction information or business data, and shall not tamper with, forge, or conceal user evaluations to prevent deception and misleading of consumers. Prohibit "forced tying". Some operators engage in behaviors such as scanning QR codes to pay for mandatory registration, binding vouchers for online ticket booking, etc., which infringe on consumers' right to choose independently. The Regulations stipulate that operators shall not use technological means to force or indirectly force consumers to purchase goods or receive services. If a business operator provides goods and services through pairing, combination, etc., it should prominently draw the attention of consumers. Prohibit "big data killing". As we all know, "fair dealing between the elderly and the children, true value for money" is not only a traditional Chinese business ethics, but also the bottom line of modern market transactions. If the operator sets discriminatory pricing based on consumer usage habits, interests, payment ability, bargaining conditions, etc., it is likely to harm consumer fairness. The Regulations stipulate that operators shall not set different prices or charging standards for the same goods and services under the same transaction conditions without the knowledge of consumers.

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