Market Regulator to Crack Down on Predatory Pricing and Strengthen Oversight on E-Commerce Platforms

Deep News09-20

At a press conference held by the State Council Information Office this morning, themed around the "15th Five-Year Plan" start, the State Administration for Market Regulation (SAMR) outlined comprehensive measures to address the issue of poor-quality, low-priced goods. The administration aims to guide market competition toward a healthier trajectory, shifting the focus from "price wars" to "quality wars," according to reports from the event.

A key priority involves strengthening price enforcement. The regulator will guide relevant industry associations to develop standard cost-calculation benchmarks, facilitating the creation of a comprehensive legal framework — described as "1+1+N" — to regulate below-cost selling. Enterprises that initiate malicious low-price competition and disrupt normal production and operational order will face cost investigations and price inspections, with penalties to be applied strictly in accordance with the law.

Additionally, plans are in place to implement the "Internet Platform Price Behavior Rules" to continuously standardize pricing competition within the platform economy. In parallel, quality risk monitoring and supervision will be intensified. Products characterized by abnormally low prices, high safety risks, or historically high failure rates will be subject to more frequent inspections. The proportion of random checks will be increased in key areas, particularly e-commerce platforms and wholesale markets.

Regulatory consistency between online and offline channels will be improved, with efforts accelerating to establish a unified national product quality and safety traceability system. Platform companies will be held to stricter account for their primary responsibilities, including verifying product information and cooperating with recalls. A special campaign will also be launched to address the quality of industrial products sold online, aiming to crack down on illegal and non-compliant sales activities.

Furthermore, routine special enforcement actions against unfair competition will be deployed on a regular basis. These actions will focus on key issues such as false advertising, mutual disparagement, commercial defamation, and commercial bribery, with the goal of investigating and penalizing a number of landmark cases.

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