Administrative Measures for Online Trading

Administrative Measures for Online Trading Order of the State Administration for Industry and Commerce (No. 60) The Administrative Measures for Online Trading, as deliberated and adopted at the executive meeting of the State Administration for Industry and Commerce (“SAIC”) of the People's Republic of China, are hereby issued and shall come into force on March 15, 2014. Director: Zhang Mao January 26, 2014 Administrative Measures for Online Trading (Issued by Order No. 60 of the State Administration for Industry and Commerce on January 26, 2014) Chapter I General Provisions Article 1 To regulate the online trading of commodities and provision of relevant services, protect the legitimate rights and interests of consumers and dealers, and promote the sustainable and healthy development of the network economy, these Measures are developed in accordance with the Law on the Protection of Consumers' Rights and Interests , the Product Quality Law , the Anti-Unfair Competition Law , the Contract Law , the Trademark Law , the Advertising Law , the Tort Law , the Electronic Signature Law and other relevant laws and regulations. Article 2 Anyone that engages in the online trading of commodities and provision of relevant services within the territory of the People's Republic of China shall abide by the laws and regulations of the People's Republic of China and these Measures. Article 3 For the purpose of these Measures, “online trading of commodities” means the business activities of selling commodities or providing services through the Internet (including mobile Internet). For the purpose of these Measures, “provision of relevant services” means the provision of for-profit services such as the third-party trading platform, publicity and popularization, credit rating, payment and settlement, logistics, express delivery, Internet access, server hosting, virtual space lease, as well as website and webpage design and production for online commodity trading. Article 4 Anyone that engages in the online trading of commodities and provision of relevant services shall follow the principles of free will, fairness and good faith, and observe business ethics, public order and good customs. Article 5 Online commodity dealers and relevant service providers shall be encouraged to innovate on the business operation model and enhance the service level, so as to promote the development of network economy. Article 6 Online commodity dealers and relevant service providers shall be encouraged to form industry organizations, establish industrial conventions, promote credit building in this sector, strengthen industrial self-discipline and promote the standardized development of this sector. Chapter II Obligations of Online Commodity Dealers and Relevant Service Providers Section I General Provisions Article 7 The dealers engaging in the online trading of commodities and provision of relevant services shall undergo industrial and commercial registration formalities in accordance with the law. A natural person engaging in online commodity trading shall conduct business activities through a third-party trading platform, and provide the platform with his or her name, address, valid identity certificate, valid contact information and other true identity information. If the registration conditions are met, the person shall undergo industrial and commercial registration formalities in accordance with the law. Where an administrative license shall be obtained for the commodities sold or services provided by a dealer engaging in the online trading of commodities and provision of relevant services as required by any law, administrative regulation or the decision of the State Council, the relevant license shall be obtained in accordance with the law. Article 8 Where a legal person, any other economic organization or an individual industrial and commercial household which has been registered at the administrative department for industry and commerce and has obtained a business license engages in the online trading of commodities and provision of relevant services, it shall disclose the information indicated on its business license or give a hyperlink to its business license at a conspicuous position of the homepage of its website or the webpage on its business operations. Article 9 The commodities or services traded in or provided online shall conform to the provisions of laws, regulations and rules. For the commodities or services whose trading is prohibited by any law or regulation, no dealer may trade in them online. Article 10 In the process of selling commodities or providing services to consumers, an online commodity dealer shall abide by the Law on the Protection of Consumers' Rights and Interests , the Product Quality Law and other relevant laws, regulations and rules, and shall not cause any damage to the legitimate rights and interests of consumers. Article 11 In the process of selling commodities or providing services to consumers, an online commodity dealer shall inform the consumers of such information as the business address, contact information, quantity and quality of commodities or services, prices of commodities or fees of services, duration and manner of performance, mode of payment, way of return or exchange, safety precautions and risk warnings, after-sales service, civil liabilities, and other information, take security measures to guarantee the safety and reliability of transactions and provide commodities or services as promised. Article 12 In the process of selling commodities or providing services, an online commodity dealer shall guarantee the integrity of the commodities and services, and may not unreasonably split them for separate trading, set any minimum consumption requirement or charge any unreasonable fees. Article 13 In the process of selling commodities or providing services, an online commodity dealer shall issue purchase vouchers or service receipts to consumers according to the relevant provisions of the state or business practices. Such bills may be issued in electronic forms with the consumers' consent. Electronic purchase vouchers or service receipts may be taken as a basis for handling consumers' complaints. The online commodity dealer must issue invoices and other purchase vouchers or service receipts if consumers so request. Article 14 Online commodity dealers and relevant service providers shall disclose the information on the commodities or services provided in a truthful and accurate manner, and may not conduct false publicity or make any false presentation. Article 15 In the process of selling commodities or providing services, online commodity dealers and relevant service providers shall abide by the Trademark Law , the Administrative Provisions on the Registration of Enterprise Names and other relevant laws, regulations and rules, and may not infringe upon the right of anyone else to the exclusive use of trademark, right to enterprise name and other rights. Article 16 Where an online commodity dealer sells commodities, consumers shall have the right to return the commodities within seven days of receipt of them without cause, except the following commodities: (1) Custom-made commodities. (2) Fresh, live, or perishable commodities. (3) Audio-visual recordings, computer software, and other digital commodities downloaded online or unpacked by consumers. (4) Newspapers or periodicals delivered. In addition to the commodities listed in the preceding paragraph, the return without cause shall not apply to commodities unsuitable for return by nature as confirmed by consumers at the time of purchase. The commodities returned by consumers shall remain intact. Online commodity dealers shall, within seven days of receipt of the returned commodities, refund the payments made by consumers for the commodities. The freight for the return of commodities shall be assumed by consumers, except as otherwise agreed upon by online commodity dealers and consumers. Article 17 Online commodity dealers and relevant service providers which use standard terms and conditions in business activities shall abide by laws, regulations and rules, fairly set the rights and obligations of both parties to the trading, and, in a conspicuous manner, remind consumers to pay attention to the terms and conditions vital to the interests of consumers, and provide explanations as required by consumers. Online commodity dealers and relevant service providers shall not, by standard terms and conditions and other means, impose unfair or unreasonable rules on consumers to exclude or restrict consumer rights, reduce or remit the responsibilities of dealers, or aggravate the responsibilities of consumers, among others, and shall not force consumers into any transactions by standard terms and conditions and technical means. Article 18 In collecting and using the personal information of consumers or dealers, online commodity dealers and relevant service providers shall follow the principles of legality, rationality and necessity, explicitly state the purposes, methods and scope of collection or use of information, and obtain the consent of relevant consumers or dealers. In collecting and using the personal information of consumers or dealers, online commodity dealers and relevant service providers shall disclose their rules on the collection or use of information, and may not collect or use information in violation of any law or regulation or the agreement of both parties. Online commodity dealers and relevant servic......