Here’s how China’s new e-commerce law will affect consumers, platform operators
- E-commerce platform operators are jointly liable with merchants for selling counterfeit and copycat merchandise on their websites
China’s comprehensive e-commerce law, which was passed in August, takes effect on January 1, bringing increased pressure on online retail companies to fight the sale of counterfeit and copycat merchandise on their platforms.
It covers the requirement for registration and licensing of e-commerce operators, taxation, electronic payment and e-commerce dispute resolution, as well as the protection of intellectual property, according to a post by Hong Kong-based law firm Deacons.
The law comes amid the rapid development of China into the world’s largest e-commerce market, with US$1.53 trillion in sales last year, estimates by research firm eMarketer show.
That expansion has largely been led by Alibaba Group Holding, through its Chinese retail platforms Taobao Marketplace and Tmall, and rival JD.com. New York-listed Alibaba is the parent company of the South China Morning Post.
The new law, which aims to help clean up China’s reputation as a major source of counterfeit and knock-off merchandise, also addresses other important aspects of e-commerce, including false advertising, consumer protection, data protection and cybersecurity, according to Deacons.