China has introduced new regulations governing e-commerce pricing practices, prohibiting businesses from selling goods below cost to eliminate competitors.
The "Internet Platform Price Behavior Rules" (hereinafter referred to as the "Rules"), jointly issued by the National Development and Reform Commission, the State Administration for Market Regulation, and the Cyberspace Administration of China, will take effect on April 10 next year with a five-year validity period.
These regulations primarily target activities such as setting or altering prices, price labeling, fee collection, and implementing subsidies. They represent the latest move by Chinese authorities to standardize e-commerce pricing, prevent vicious competition, and enhance price transparency.
The Rules require platform operators and merchants on the platforms to clearly mark prices for sold goods or provided services. They must prominently display price-related information including transportation or delivery fees, shipping methods, dispatch times, and payment options—along with any other unavoidable charges.
For promotional activities, businesses shall indicate promotional prices or pricing rules in a manner easily understandable to consumers. Platform operators must also conduct subsidy promotions fairly and impartially, refraining from false or exaggerated claims about subsidy amounts and intensity.
In regulating price competition, the Rules prohibit businesses from selling goods or services below cost to eliminate competitors or monopolize the market, which would disrupt normal production and operation order. Exceptions apply to discounted sales of perishable goods, seasonal products, overstocked items, and near-expiry goods, as well as price reductions for services with legitimate reasons.
Platform operators are also barred from forcing or implicitly compelling on-platform merchants to sell goods or provide services below cost in accordance with the platform’s pricing rules. Additionally, businesses are prohibited from fabricating or spreading price increase information to drive up prices.
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