Three Departments: Platform Operators Must Conduct Subsidy Promotions Fairly Without False or Exaggerated Claims

Deep News12-20 15:21

On December 20, the National Development and Reform Commission, the State Administration for Market Regulation, and the Cyberspace Administration of China jointly issued the "Internet Platform Pricing Behavior Rules." The rules stipulate that platform operators must conduct subsidy promotions fairly and transparently, prohibiting false or exaggerated claims about subsidy amounts or intensity.

Platform operators must clearly display subsidy and promotional rules on the relevant activity pages of their websites or applications (APP), specifying details such as subsidy recipients, methods, participation conditions, and start/end times. The rules will take effect on April 10, 2026, and remain valid for five years.

Key provisions include: 1. **Fair Pricing Practices**: Platform operators and merchants must adhere to legal, fair, and transparent pricing principles, ensuring consumers' rights to information, choice, and fair transactions. 2. **Prohibited Restrictions**: Platforms must not force merchants to lower prices, match prices across channels, or impose automatic price-adjustment systems. 3. **Transparent Fee Structures**: Any new or revised fees must be publicly disclosed with at least seven days' notice, and merchants must be allowed to exit if they disagree with changes. 4. **Clear Price Disclosures**: Prices, additional fees (e.g., shipping), and dynamic pricing rules must be prominently displayed. Subsidy promotions must avoid misleading representations. 5. **Anti-Competitive Measures**: Below-cost pricing, price discrimination, and collusion to manipulate markets are prohibited, except for legitimate cases like clearing perishable or seasonal stock. 6. **Consumer Protections**: Automatic renewals or bundled services require clear opt-out options, and price disputes should be resolved through established mechanisms.

The rules also mandate platforms to strengthen internal compliance, establish complaint channels, and cooperate with regulatory inspections. Violations may trigger warnings, rectification orders, or penalties, though minor infractions without harm may be exempt.

The framework aims to standardize platform pricing, curb monopolistic practices, and safeguard consumer and merchant rights in China’s digital economy.

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