China has unveiled draft rules aimed at tightening oversight of internet platform pricing, following widespread complaints from merchants and consumers about unfair and misleading practices.
The National Development and Reform Commission (NDRC) said in a statement on Saturday that the new draft regulations target platforms selling goods or services online. The goal is to encourage transparency, fairness, and accountability in the way prices are set and adjusted.
Key Provisions in the Draft Rules
According to the NDRC, internet platforms and merchants operating online will be required to:
- Agree and adjust prices using standardised methods such as contracts and orders.
- Adhere strictly to clear and transparent pricing regulations.
- Promptly disclose fee changes to merchants and consumers.
- Improve public oversight by making pricing rules more accessible.
These measures are expected to address long-standing concerns that major e-commerce platforms manipulate prices to artificially boost sales.
Complaints From Merchants and Consumers
Merchants have often accused large platforms of using unfair tactics, such as forcing discounts or inflating prices before promotions. Consumers, on the other hand, have complained of misleading price labels that give the illusion of savings.
Such practices have triggered regulatory scrutiny in recent years. In 2021, Alibaba was fined a record $2.75 billion for anti-monopoly violations, a landmark case that signaled Beijing’s growing determination to curb abuses of market power.
Regulatory Context and Industry Impact
China’s e-commerce leaders—including Alibaba, JD.com, and Pinduoduo—have faced mounting pressure as regulators tighten rules on competition, data usage, and pricing.
Despite these challenges, companies continue to wage aggressive price wars in “instant retail”, a fast-growing sector where goods can be delivered within 30 minutes. While platforms have downplayed regulatory risks, the new draft rules could reshape pricing strategies across the industry.
What Happens Next
The draft rules are currently open for public consultation, with feedback from merchants, consumers, and industry stakeholders expected to shape the final regulations.
If adopted, the rules could significantly strengthen consumer protection and ensure a fairer online marketplace in China’s booming digital economy.
