China targets automatic price matching in e-commerce quality initiative
In short
China's Ministry of Commerce and six other departments issued a quality-focused e-commerce notice on October 10. It calls for stronger enforcement against disorderly competition, including automatic price matching and lowest-price-across-the-web practices.
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China's Ministry of Commerce and six other departments issued a notice on October 10 setting out a quality-focused e-commerce initiative. Reports by CLS, 36Kr and Yicai highlighted its call for stronger supervision and enforcement against disorderly and irrational competition, including platforms' automatic price matching and lowest-price-across-the-web practices. [ 1 , 2 , 3 , 7 ]
The notice calls for rules governing platform commissions and merchant ratings to be regulated to avoid squeezing quality-focused sellers. It also calls for action against fake orders and manipulated reputation scores, and for a dialogue mechanism between platforms and small and medium-sized merchants to help resolve difficulties in their operations. [ 1 , 2 , 3 , 9 , 11 ]
On platform governance, the notice urges platforms to follow legal requirements when drafting and revising rules, including publication and public consultation. It calls for standardized implementation of rules to protect merchants' and consumers' lawful rights. Platforms are also encouraged to improve product displays, recommendations and marketing mechanisms, placing greater emphasis on product quality, service reputation and credit information. [ 5 , 7 , 8 , 13 ]
The initiative encourages chief quality officer systems and systematic quality management, along with improved evaluations of online service quality. Government data verification is to support checks of merchants' licence and certification information. The notice also calls for customized training for smaller merchants in areas such as quality management, standards, compliance and brand building. [ 7 , 8 , 14 ]
Other measures include linking industrial clusters with e-commerce channels, supporting smaller sellers with core technologies or original designs, and helping foreign-trade enterprises expand in the domestic market. The notice supports integrating artificial intelligence into e-commerce services. A Ministry of Commerce e-commerce department official said the initiative sets out 15 specific tasks and that the ministry would work with other departments to implement them. [ 7 , 8 , 10 ]
Why it matters
The notice seeks to prevent platform commissions and merchant-rating rules from squeezing quality-focused sellers. It also calls for public consultation on platform rules and greater emphasis on product quality, service reputation and credit information.
Key facts
- The Ministry of Commerce and six other departments issued the notice on October 10. [ 7 , 12 ]
- The notice calls for stronger enforcement against automatic price matching and lowest-price-across-the-web practices. [ 1 , 2 , 3 , 9 , 11 ]
- It calls for regulating platform commissions and merchant ratings and combating fake orders and manipulated reputation scores. [ 1 , 2 , 3 , 9 , 11 ]
- Platforms are urged to publish rules and seek public comments when drafting or revising them. [ 5 , 7 , 8 , 13 ]
- The initiative encourages platforms to establish chief quality officer systems. [ 7 , 8 , 14 ]
Confirmed by several sources
Still unclear
- No open questions in the coverage so far.