Today, the "Internet Platform Price Behavior Rules" jointly formulated by the National Development and Reform Commission, the State Administration for Market Regulation, and the Cyberspace Administration of China were officially implemented.For the first time in the form of departmental regulations, the new regulations clearly prohibit price chaos such as big data ripening and exaggerated subsidy amounts. They cover all platform scenarios such as e-commerce, takeaways, online ride-hailing, online travel, and video memberships, setting a fair bottom line for digital consumption.
The new regulations clarify that platforms are not allowed to set differentiated prices for different users of the same goods/services, at the same time, and under the same transaction conditions based on data such as willingness to pay, consumption preferences, device types, etc. without the knowledge of consumers. Prices are the same for regular users, members, and Apple/Android users. Algorithmic discrimination and "discrimination based on others' preferences" are illegal.
Platforms must not fabricate subsidy amounts, exaggerate the intensity of discounts, or set rules for full discounts or coupon packages that cannot be honored; promotional information must clearly indicate the applicable scope, period, and threshold, and price frauds such as "first increase and then decrease" and "false full discounts" are prohibited.
Platforms must not force/disguise merchants to reduce prices, give away profits, or participate in promotions, and shall not interfere with pricing through means such as limiting traffic, reducing rights, or removing products from shelves. Changes in platform fees and rules must be announced in advance and solicit opinions to protect merchants' fair business rights.
Prices, unit of account, freight, promotion rules, automatic renewal terms, etc. must be clearly marked, and unmarked fees must not be charged.
The automatic renewal activation/cancellation entrance must be equally convenient, and a prominent reminder must be given before deduction, and the routine design of "one-click activation and multi-level cancellation" is prohibited.
Dumping below cost price for the purpose of squeezing out competitors is prohibited, and healthy competition order is maintained.