Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

China proposes rules to punish illegal e-commerce pricing

Stock MarketsJul 02, 2021 06:15AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A woman checks her phone as passengers arrive at the Beijing Railway Station in central Beijing, China February 1, 2018. REUTERS/Damir Sagolj/File Photo

BEIJING (Reuters) -China's market regulator issued draft rules on Friday to punish illegal pricing activities, including heavy subsidies and the practice by online platforms of charging different prices based on customers' purchasing behaviour.

The rules are the latest in an effort by the State Administration for Market Regulation (SAMR) to rein in China's free-wheeling platform economy, which has seen it levy fines, launch investigations and issue warnings to booming e-commerce giants.

"The pricing practices have been widespread among online platforms and it is a hidden problem to ordinary consumers because it's not very easy to notice," said Lu Zhenwang, chief executive officer of Shanghai-based Wanqing Consultancy.

Consumers over the years have complained on social media that e-commerce platforms don't charge the same price for the same offerings.

Among the practices banned in the rules proposed on Friday are subsidies that cut the price of a product to below cost.

Violation of the rules could incur a fine of 0.1% to 0.5% of a business' annual sales or even suspension of operations, SAMR said.

In an April meeting with the market regulator in the southern metropolis of Guangzhou, platform companies including JD (NASDAQ:JD).com, Meituan, Alibaba (NYSE:BABA)'s food delivery arm Ele.me, Trip.com and Didi Chuxing pledged not to take advantage of big data to charge loyal customers more.

In March, state news agency Xinhua reported that Alibaba's online travel agency Fliggy offered different ticket prices for the same flight, with more loyal users getting a higher price. In the same article, Xinhua said Meituan charged different prices for the same pet care product.

Alibaba and Meituan did not immediately respond to requests for comment from Reuters on Friday.

In October, the Ministry of Culture and Tourism imposed a rule banning the practice of differentiated pricing by online travel services.

In April, SAMR fined Alibaba a record 18 billion yuan ($2.78 billion) for abuse of its dominant market position and announced an antitrust investigation into Meituan.

($1 = 6.4808 Chinese yuan renminbi)

China proposes rules to punish illegal e-commerce pricing
 

Related Articles

Hope rally turns choppy as hot U.S. inflation looms
Hope rally turns choppy as hot U.S. inflation looms By Reuters - Dec 08, 2021 4

By Tom Westbrook SYDNEY (Reuters) - Stocks rose in choppy trade on Thursday as worries about the economic impact of the Omicron coronavirus variant ebbed but increasing caution...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email