China drafts new rules to curb big data price gouging

Source Cryptopolitan

On Saturday, China’s National Development and Reform Commission (NDRC) and two other ministries, the State Administration for Market Regulation and the Cyberspace Administration of China, proposed new internet pricing rules. The agencies claimed they wanted to encourage more equitable competition and promote openness in the digital economy.

Per their joint announcement, the draft regulations are intended to plug regulatory gaps in internet pricing, especially in price presentation, algorithm-driven adjustments, and dynamic promotions.

The draft calls on platforms to disclose fee charges, promotions, and subsidies clearly

The NDRC said the draft rules would ban online platforms from using unfair methods such as reducing store traffic or pulling products off shelves to squeeze the merchants’ pricing autonomy. It added that the regulation also sets behavior, accountability, and data use standards while encouraging cooperation among regulators, industry organizations, and platform operators.

According to the draft, without consumer knowledge, platforms may not use big-data profiling to alter prices or fees for the same product or service under identical conditions—based on factors like consumers’ willingness or ability to pay, preferences, or habits. Market platforms would also need to display prices and be more transparent on promotions, subsidies, price discrimination, variable quotas, and ranking systems.

Per the commission, all these rules would promote fair competition. It affirmed, “The platform economy involves many operators whose pricing behavior directly affects consumers. Refining these rules will help ensure orderly, fair competition and protect the rights of both businesses and consumers.” So far, the agency has also invited public comments on the proposal for a month.

China’s top regulator also proposed new rules in May

Vendors have long complained that leading platforms distorted prices to encourage sales, and consumers have raised issues about misleading pricing tactics. Alibaba, for example, was slapped with a record $2.75 billion fine in 2021 over antitrust violations, which the enterprise accepted.

Nonetheless, major e-commerce firms have since dismissed regulatory threats while intensifying competition in “instant retail.”

A few months ago, China’s top market regulator had proposed new rules to standardize commission fees on e-commerce platforms, promoting fairness and transparency. The announcement even prompted a decline in Meituan’s share price.

The Chinese government also ended the practice of e-commerce platforms enforcing customer refunds on behalf of buyers, as reported earlier by Cryptopolitan. Now only merchants will have the authority to initiate refunds, giving them greater control over transactions.

Previously, platforms could process refunds without merchant approval, allowing customers to receive reimbursements without returning goods. This approach, which began in 2021 with PDD Holdings leading the way, was intended to improve customer satisfaction and streamline disputes. However, the policy resulted in significant financial losses for merchants, who often lost both their products and revenue.

The newly announced guideline, titled Compliance Guide for Online Trading Platform Fees, was posted on the State Administration for Market Regulation’s website, to which the watchdog claimed it covered all internet platforms that provided online storefronts, facilitated deals, shared information, and delivered services. It further noted that the proposals would lessen the burdens on vendors and boost small and medium-sized businesses.

Per the draft, platforms would have to shoulder social responsibility during natural disasters or public health crises by cutting or waiving commissions and reducing other fees. It also called on platforms to set fair pricing structures grounded in factors such as operating costs, contractual agreements, transaction norms, consumer habits, and similar considerations. Furthermore, it stated that platforms should reinforce pre-compliance review structures to ensure charges remain fair.

Want your project in front of crypto’s top minds? Feature it in our next industry report, where data meets impact.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
October hike odds climb toward 60% as Goldman and BofA both flip — what Warsh's "dose of accommodation" really changedRate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.
Author  Irene Q.
Sep 23, Wed
Rate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.
placeholder
Gold holds steady below $4,150 amid elevated US yields Gold price (XAU/USD) trades on a flat note near $4,140 during the early Asian session on Tuesday. Pressure from a stronger US Dollar (USD) and elevated US Treasury yields was offset by reduced expectations of a Federal Reserve (Fed) rate hike this month.
Author  FXStreet
Yesterday 01: 14
Gold price (XAU/USD) trades on a flat note near $4,140 during the early Asian session on Tuesday. Pressure from a stronger US Dollar (USD) and elevated US Treasury yields was offset by reduced expectations of a Federal Reserve (Fed) rate hike this month.
placeholder
Japanese Yen drifts lower as sustained USD buying offsets intervention fearsThe USD/JPY pair attracts some buyers following the previous day's two-day price moves, trading above the 158.00 mark during the early part of the European session on Tuesday.
Author  FXStreet
19 hours ago
The USD/JPY pair attracts some buyers following the previous day's two-day price moves, trading above the 158.00 mark during the early part of the European session on Tuesday.
placeholder
AUD/USD Price Forecast: Struggles to return to 0.7000 amid firm US DollarThe Australian Dollar (AUD) gives back its early gains after rising to near 0.6975 and turns marginally lower at around 0.6964 against the US Dollar (USD) during the European trading session on Tuesday.
Author  FXStreet
18 hours ago
The Australian Dollar (AUD) gives back its early gains after rising to near 0.6975 and turns marginally lower at around 0.6964 against the US Dollar (USD) during the European trading session on Tuesday.
placeholder
WTI rises to near $89.50 as Middle East supply threats offset Persian Gulf recoveryWest Texas Intermediate (WTI) oil price extends its gains for the second successive day, trading around $89.50 per barrel during the Asian hours on Wednesday. Crude oil climbed as persistent risks to Middle East energy flows overshadowed signs of rising supply from the region.
Author  FXStreet
2 hours ago
West Texas Intermediate (WTI) oil price extends its gains for the second successive day, trading around $89.50 per barrel during the Asian hours on Wednesday. Crude oil climbed as persistent risks to Middle East energy flows overshadowed signs of rising supply from the region.
goTop
quote