E-Commerce Law of the People's Republic of China

E-Commerce Law of the People's Republic of China

Order of the President

(No. 7)

The E-Commerce Law of the People's Republic of China, as adopted at the 5th session of the Standing Committee of the Thirteenth National People's Congress of the People's Republic of China on August 31, 2018, is hereby issued and shall come into force as of January 1, 2019.

President of the People's Republic of China Xi Jinping
August 31, 2018

E-Commerce Law of the People's Republic of China
(Adopted at the 5th session of the Standing Committee of the Thirteenth National People's Congress of the People's Republic of China on August 31, 2018)

Contents
Chapter I General Provisions
Chapter II E-commerce Businesses
Section 1 General Rules
Section 2 E-Commerce Platform Businesses
Chapter III Formation and Performance of E-Commerce Contracts
Chapter IV Settlement of E-Commerce Disputes
Chapter V Promotion of E-Commerce
Chapter VI Legal Liability
Chapter VII Supplemental Provision

Chapter I General Provisions

Article 1 This Law is enacted for purposes of safeguarding the lawful rights and interests of all parties to e-commerce, regulating e-commerce conduct, maintaining the market order, and promoting the sustainable and sound development of e-commerce.

Article 2 This Law shall apply to e-commerce activities in the territory of the People's Republic of China.
For the purpose of this Law, "e-commerce" means business activities of selling commodities or providing services through the Internet or any other information network.
If any other law or administrative regulation provides for the sale of commodities or provision of services, such other law or administrative regulation shall apply. This Law shall not apply to financial products and services and news information, audio and video programs, publication, cultural products, and other content services provided via information networks.

Article 3 The state shall encourage the development of new business types in e-commerce and the innovation in business models, promote the research, development, promotion and application of e-commerce technologies, advance the development of the e-commerce honesty system, create a market environment favorable to innovative development of e-commerce, and maximize the role of e-commerce in promoting quality development, satisfying the people's ever-growing needs for a better life, and building an open economy.

Article 4 The state shall equally treat online and offline business activities and promote integrated development online and offline, and the people's governments and relevant authorities at all levels may neither take discriminatory policies and measures nor abuse administrative power to exclude or restrict market competition.

Article 5 An e-commerce business shall, in business operation, abide by the principles of voluntariness, equality, equity and good faith, observe the law and business ethics, fairly participate in market competition, perform obligations in aspects including protection of consumer rights and interests, environment, intellectual property rights, cybersecurity and individual information, assume responsibility for quality of products or services, and accept the supervision by the government and the public.

Article 6 The relevant departments of the State Council shall, according to the division of labor based on the duties, be responsible for the promotion of development, supervision, and administration of and other work on e-commerce. Local people's governments at or above the county level may, based on the local actual circumstances, determine the division of duties for departments with respects to e-commerce in their respective administrative regions.

Article 7 The state shall establish a collaborative administration system in line with the characteristics of e-commerce and promote the formation of an e-commerce market governance system jointly participated in by relevant authorities, e-commerce industry associations, e-commerce businesses, and consumers, among others.

Article 8 An e-commerce industry association shall, according to its bylaws, conduct industry self-discipline, establish and improve industry standards, promote the building of industry honesty, and supervise and guide businesses in the industry so that they fairly participate in market competition.

Chapter II E-Commerce Businesses

Section 1 General Rules

Article 9 For the purpose of this Law, "e-commerce businesses" means natural persons, legal persons or organizations without the status of legal person that engage in the business activities of selling commodities, or providing services, through the Internet or any other information network, including e-commerce platform businesses, in-platform businesses, and e-commerce businesses that sell commodities or provide services through a self-built website or any other network services.
For the purpose of this Law, "e-commerce platform business" means a legal person, or an organization without the status of legal person, which, in e-commerce, provides both or multiple parties to trading with services, such as online places of business, match-making, and releasing information, for them to independently conduct trading activities.
For the purpose of this Law, "in-platform business" means an e-commerce business which sells commodities or provides services through an e-commerce platform.

Article 10 An e-commerce business shall make market participant registration according to the law, unless it, as an individual, sells agricultural or sideline products produced by it, or products of a cottage industry, or uses its own skills to engage in public convenience services, or occasional and low-value transactions, for which no permit is required by law, or unless no registration is required by laws or administrative regulations.

Article 11 An e-commerce business shall, according to the law, perform the obligation of tax payment and enjoy tax incentives.
An e-commerce business not required to make market participant registration under the provisions of the preceding Article shall, upon the occurrence of the obligation of tax payment for the first time, as required by the laws and administrative regulations in relation to tax collection administration, apply for tax registration and faithfully file tax returns

Article 12 Where an e-commerce business, in business operation, is required by law to obtain relevant administrative licensing, it shall obtain it according to the law.

Article 13 An e-commerce business shall sell commodities or provide services meeting the requirements for guaranteeing personal and property safety and for environmental protection and shall not sell or provide commodities or services the trading of which is prohibited by any law or administrative regulation.

Article 14 An e-commerce business shall, when selling commodities or providing services, issue hard-copy or electronic invoices or other documents on purchasing commodities or receiving services, according to the law. An electronic invoice shall have the same legal effect as a hard-copy invoice.

Article 15 An e-commerce business shall, at a conspicuous place of its homepage, continuously publish the information on its business license, the information on the administrative licensing relating to the business operated by it, the circumstances not requiring it to make market participant registration as provided in Article 10 of this Law, and other information, or the mark of the link to the aforesaid information.
If the information specified in the preceding paragraph is modified, the e-commerce business shall promptly update and publish the information.

Article 16 Where an e-commerce business is to independently terminate its engagement in e-commerce, it shall, 30 days in advance, continuously publish the relevant information at a conspicuous place of its homepage.

Article 17 An e-commerce business shall fully, authentically, accurately, and timely disclose the information on commodities or services to safeguard consumers' right to know and right of choice. An e-commerce business may not conduct false or misleading commercial promotion by fabricating transactions, making up user comments or any other means, to defraud or mislead consumers.

Article 18 When providing the results of search for commodities or services for a consumer based on the hobby, consumption habit, or any other traits thereof, the e-commerce business shall provide the consumer with options not targeting his/her identifiable traits and respect and equally protect the lawful rights and interests of consumers.
An e-commerce business shall send advertisements to consumers according to the relevant provisions of the Advertising Law of the People's Republic of China.

Article 19 If an e-commerce business performs tie-in sale of commodities or services, it shall request consumers to pay attention in a conspicuous manner and shall not set the said tie-in sale as a default option.

Article 20 An e-commerce business shall deliver commodities or services to a consumer according to its commitment or in the manner and period stipulated with the consumer and assume risk and responsibility in relation to the shipment of the commodities, unless the consumer separately chooses a logistics service provider.

Article 21 If an e-commerce business collects deposits from consumers as agreed, it shall expressly state the manner and procedure for the refund of the deposits, and shall not set unreasonable conditions. If a consumer applies for the refund of his/her deposit and meets the condition therefor, the e-commerce business shall make a refund in a timely manner.

Article 22 Where an e-commerce business has a dominant market position on account of its technological advantage, number of users, control of the relevant industry, other businesses' reliance on it in trading, or any other factor, the e-commerce business may not abuse the dominant market position to exclude or restrict competition.

Article 23 An e-commerce business shall, when collecting or using the individual information of its users, observe the provisions on protection of individual information in the relevant laws and administrative regulations.

Article 24 An e-commerce business shall expressly state the means of and procedures for search, correction or deletion of user information and user deregistration and shall not establish unreasonable conditions for search, correction or deletion of user information and user deregistration.
When receiving an application for search, correction or deletion of user information in a timely manner, an e-commerce business shall, upon verification of identity, permit search, correction or deletion of user information in a timely manner. In the case of user deregistration, an e-commerce business shall immediately delete the information of the user; if any law or administrative regulation provides for, or the parties stipulate, the retention, the law, administrative regulation, or stipulation shall prevail.

Article 25 Where the relevant authorities require, according to any law or administrative regulation, an e-commerce business to provide relevant e-commerce data and information, the e-commerce business shall do so. The relevant authorities shall take necessary measures to protect the security of the data and information provided by e-commerce businesses, strictly keep confidential the individual information, privacy, and trade secrets therein, and shall not divulge, sell, or illegally provide them to any other person.

Article 26 An e-commerce business shall engage in cross-border e-commerce according to the laws, administrative regulations, and other relevant provisions issued by the state on the supervision and administration of import and export.

Section 2 E-Commerce Platform Businesses

Article 27 An e-commerce platform business shall request a business applying for selling commodities or providing services in its platform to submit authentic information including its identity, address, contact information, and administrative licensing, make verification and registration, establish a register, and make regular updates and verification.
When an e-commerce platform business provides services for non-business users selling commodities or providing services in its platform, the e-commerce platform business shall observe the relevant provisions in this Section.

Article 28 An e-commerce platform business shall submit the identity information of in-platform businesses to the administrative authorities of market regulation as required, remind a business that has not made market participant registration to make registration as legally required, cooperate with the administrative authorities of market regulation, and based on the characteristics of e-commerce, provide businesses required to make market participant registration with registration facilitation.
An e-commerce platform business shall submit the identity information and the information related to tax payment of in-platform businesses to the taxation authorities, according to the laws and administrative regulations on tax collection administration, and remind e-commerce platform businesses, which are not required to make market participant registration under Article 10 of this Law, to make tax registration under paragraph 2, Article 11 of this Law.

Article 29 Where an e-commerce platform business discovers that any information on commodities or services in its platform falls under any circumstances as provided for in Article 12 or 13 of this Law, it shall take necessary disposition measures in accordance with the law and report to the relevant competent authorities.

Article 30 An e-commerce platform business shall take technological measures and other necessary measures to ensure its cybersecurity and stable operation, prevent online illegal and criminal activities, effectively tackle cybersecurity events, and guarantee e-commerce trading security.
An e-commerce platform business shall make a contingency plan for cybersecurity events and when a cybersecurity event occurs, it shall launch the contingency plan forthwith, take corresponding remedial measures, and report to the relevant competent authorities.

Article 31 An e-comme......