CNBC AI News – June 9th – The State Administration for Market Regulation (SAMR) in China has issued a compliance advisory for online retailers gearing up for the “6.18” shopping bonanza, a major e-commerce event.
The SAMR’s guidelines, aimed at ensuring fair competition and protecting consumer rights, are particularly focused on preventing unfair practices during the promotional period.
The advisory, recently sent to major e-commerce platforms, live-streaming platforms, and cross-border e-commerce businesses, outlines key areas of focus.
Here’s a breakdown of the key highlights:
Promotional Conduct: The SAMR mandates fair market participation, cracking down on practices such as “big data price discrimination” (where prices are tailored based on consumer data), deceptive marketing, and the use of fake reviews to boost sales. The advisory also seeks to prevent fraudulent claims for government subsidies on products.
Live-Streaming Marketing: Platforms are required to bolster their management protocols for live-streaming sales, develop robust risk identification models, and proactively monitor the activities of live-streaming channels and hosts. This includes swift action to address any illegal or non-compliant activities that arise during live broadcasts.
Advertising Content Review: The SAMR is intensifying scrutiny of advertisements, especially those related to medical aesthetics, pharmaceuticals, medical devices, and health supplements. Celebrity endorsements will also be under the microscope, with a focus on quickly identifying and removing any non-compliant ads.
Consumer Dispute Resolution: Platforms must ensure that merchants adhere to regulations regarding the right to return goods within seven days of purchase and adhere to warranty policies, while also improving channels for consumer complaints and handling disputes efficiently.
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