Investing.com -- Chinese authorities have reportedly requested e-commerce platforms to cease their practice of requiring vendors to offer refunds without product returns, according to Reuters. This move is intended to alleviate financial pressure on merchants.
Officials have met with various platforms, including PDD Holdings, and have concluded that this practice must be discontinued by July. After this deadline, only the merchant will have the authority to initiate a refund.
PDD Holdings and JD.com, another major e-commerce platform in China, declined to comment on this development. Alibaba (NYSE:BABA) Group, a leading player in the e-commerce sector, and China’s State Administration for Market Regulation, the regulatory authority overseeing market operations, have yet to respond to requests for comment on this matter.
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