Shanghai's new moves to regulate Internet companies

Shanghai's market regulators on Tuesday implemented six new measures to regulate Internet companies.

New forms of unfair competition that have emerged in the digital field, such as false reviews and ratings and cashback for positive reviews, will be monitored by the Shanghai Administration for Market Regulation.

It will also address new unfair practices, such as malicious interference and incompatibility, as well as new technologies related to unfair competition, such as unlawful data acquisition and discriminatory treatment.

Influencer-driven promotions and wanghong (online celebrity) store visits will be regulated, as will the release of Internet advertisements and the operation of emergent marketing models.

The administration will also prioritize the prevention of indecent marketing, false price comparisons, and other issues in livestreaming, as well as addressing concerns about misleading promotions.

The administration will remind platform companies to conduct surveillance, self-examination, and rectification promptly, as well as to be aware of the risks of common violations.

The administration's law enforcement division signed a cooperative management memorandum with 10 Internet platforms on Tuesday.

Tang Jianxiong, head of one of the administration's law enforcement teams, said the team will assist platform companies in resolving issues at the outset through methods such as education.