(Mirror Daily, United States) – China voted for thorough changes that regard a particular law within the business competition domain. All these efforts have one goal which is that of eradicating frauds across ecommerce environment. This online world has been known for its exaggerated public data. Merchants publish increased sales numbers while websites are full of fake positive product reviews. In lack of articulate regulations, online shoppers are always at risk.
Chinese Congress Voted to Update a 1993 Competition Law to Modern Practices
On Saturday, the National People’s Congress voted in favor of revisions of the Anti-Unfair Competition Law. The changes regard online retailers and will come into effect as of January 1st, 2018.
The new regulations were announced only days before the start of the Chinese version of America’s Black Friday. This event entitled 11 Singles’ Day is supported mostly by Alibaba Group Holding Ltd. However, the Chinese bargain day encompasses by far the U.S. as far as the revenue is concerned.
The business competition law appeared in 1993, and it advocated protection of entities and shoppers against illegal market practices. However, the regulation became outdated with the appearance of the main pillars of the Chinese ecommerce environment. These are Alibaba, Baidu Inc., JD.com Inc., and Tencent Holdings Ltd.
The Ecommerce Environment Will Become More Trustworthy
The new law alterations claim that no operator should build a fake image of itself to attract new customers. Therefore, the law specifically eyed those website owners that publish counterfeit sales numbers or resort to ‘click farm’ practices.
These are only some strategies that buyers have grown angry with. The new changes are going to apply to all ecommerce fields, be it movie ticketing or food delivery.
Some of the ramifications will no longer put up with businesses deleting bad reviews or forcing people to write good reviews. Another common practice that will be perceived as illegal is the purchase of massive movie tickets to the same production. This way, websites were securing strong box-office rankings for a particular film.
The punitive measures in case these new amendments are broken include fines ranging from $30,000 to $150,000. However, the new law permits regulators even to revoke business licenses in extreme cases.
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