News

China has established an e-commerce compliance mechanism centered around legal documents such as the "E-commerce Law of the People's Republic of China" and the "Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Cases of Disputes over Online Transactions (I)".

For instance, the relationship between e-commerce companies and competitors involves the Internet-specific provisions of the "Anti-Unfair Competition Law". The relationship between e-commerce companies and consumers is regulated by the "Interim Measures for the Return of Goods Purchased Online within Seven Days". The relationship between e-commerce companies and suppliers involves the responsibility for inspecting specific goods (such as food, cosmetics, and overseas goods). The relationship between e-commerce companies and service providers includes the legal roles and responsibilities between operation agencies, MCNs (Multi-Channel Networks), and major influencers, as outlined in the "Measures for the Administration of Online Live Marketing" and specific local regulations. Advertising online is governed by the "Interim Measures for the Administration of Internet Advertising". Online marketing activities involve price compliance, rules for online activity promotions, and the collection of personal information.

E-commerce Law

The "E-commerce Law of the People's Republic of China" is comprehensive legislation that provides a comprehensive framework for e-commerce activities. It strictly applies within the territory of the People's Republic of China and addresses the sale of goods or provision of services through the Internet or other information networks. The law prioritizes supporting and promoting the sustainable and healthy development of e-commerce, expanding the space for e-commerce, and promoting the deep integration of e-commerce with the real economy. It emphasizes openness, foresight, innovation, and competition while also balancing the need for regulation and management, laying the institutional framework for the future development of e-commerce. The law establishes principles of technological neutrality, format neutrality, and model neutrality in e-commerce, gradually forming a consensus on the non-discriminatory e-commerce market order between online and offline platforms. It mandates the equal treatment of online and offline commercial activities, promoting their integrated development. The law also improves and innovates a collaborative regulatory system and specific mechanisms that suit the characteristics of e-commerce development. It requires the establishment of a collaborative management system that aligns with the characteristics of e-commerce, with governments at all levels responsible for promoting, supervising, and managing e-commerce development according to their respective duties. The focus of regulation is on legality, reasonableness, effectiveness, and moderation, avoiding excessive enforcement or lax regulation. Although the "E-commerce Law" provides most institutional norms, it cannot cover all aspects of e-commerce.

Anti-Unfair Competition Law

The "Anti-Unfair Competition Law" aims to maintain fair market competition and protect the legitimate rights and interests of operators and consumers. Therefore, identifying unfair competition behaviors must involve violations of widely recognized industry norms and further disrupt the fair competition of the market order.

For example, Article 12, known as the Internet-specific provision, adopts a listing plus bottom-line legislative approach to enumerate common unfair competition behaviors in the Internet industry.

Interpretation by the Supreme People's Court

The Supreme People's Court's interpretation of the "Anti-Unfair Competition Law" addresses various aspects of unfair competition, including forced redirection, misleading, deceptive, or coercive actions, malicious interference or incompatibility, and other behaviors that disrupt the normal operation of other operators' network products or services.

These legal provisions and interpretations form a comprehensive system of intellectual property protection, governance measures, and legal liabilities for platform operators. Collaboration with intellectual property rights holders, timely action on notices, and transparency in handling results are essential components of this system.

The legal provisions and interpretations regarding unfair competition address specific issues such as forced redirection, interference, and incompatibility, adapting to the diverse development of Internet technology. They also consider factors such as malicious intent and the severity of the disruption to other operators' products or services.

(To be continued)