Lawmakers revise law on unfair online competition

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Chinese lawmakers are debating changes to the law on fair competition and false advertising to deal with a rise in unethical practices by e-commerce operators.

The Anti-unfair Competition Law, called the Market Economy Constitution, has played an important role in the development of the socialist market economy since its promulgation in 1993, but officials say amendments are needed amid fierce competition in the booming online shopping market.

"Fake advertising by e-commerce operators has become a serious problem, severely disturbing market order," Zhang Mingqi, vice-director of the National People's Congress (NPC) law committee, told lawmakers at the bimonthly session of the NPC Standing Committee.

Lawmakers holding a panel discussion on the draft law on October 31. /CGTN Photo

The lawmakers were debating the third reading of the draft amended law.

It stipulates that e-commerce operators should neither deceive nor mislead consumers by faking sales volume or user comments and that operators shall not fabricate transactions to help others in commercial promotions.

Wang Mingwen, member of the NPC Standing Committee, said that compared with the second draft, the third adds items to ban operators from fabricating transactions, a move he described as important.

It redefines unfair competition as that which "violates this law, disturbs market order or infringes on the rights and interests of other operators or consumers during production and operations."

Lawmaker Wang Mingwen speaking at the panel discussion. /CGTN Photo

The draft also states that industrial associations shall uphold market order through self-discipline and by guiding their members to compete in accordance with law.

Officials of supervision and inspection departments shall not disclose any commercial secrets of the entities they investigate, the draft said.

But lawmaker Peng Sen said more deliberation is needed as the draft is not clear about supervision aspects and law enforcement body that will be in charge..

The revision aims to address new problems emerging in the market, encourage and protect fair competition and protect the rights and interests of both business operators and consumers.

It will be put to vote on Saturday.

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