Rules tightened for e-commerce platforms as COVID-19 flares

E-commerce platform operators are banned from clearing overstocked inventory with "blind box" sales amid the COVID-19 resurgence, according to a notification released by Shanghai's market regulators on Wednesday.

The warning to regulate the business operation of e-commerce sites also states that operators should take measures to enhance management of delivery workers and stop "malicious price hikes" for their services.

Oversight of delivery persons' registration should be beefed up, and e-commerce businesses should take measures to ensure the quality of the goods, particularly fresh food, they deliver.

They should accurately, honestly, completely and in a timely fashion reveal information about their commodities. False or misleading promotions on the source, function, quality and sales amount of goods are banned.

If the goods sold on platforms are near expiry dates, companies should make consumers fully aware in advance and mark prices clearly. Short-weighting and price gouging are prohibited.

Companies should enhance storage and logistics management. Random cancellation of orders and changes of goods are banned.

If these do happen due to shortages or logistics difficulties, companies should provide solutions such as a refund or filling in the price difference.

Prices of packages and blind boxes should be reasonably set, and the varieties and amount of goods contained in blind boxes should be properly arranged to satisfy the demand of residents during lockdown.

Blind boxes are not recommended during the pandemic period to prevent consumption disputes, the notice states.

Residents can tip authorities off about pricing irregularities involved in group buying by calling 12345, a 24-hour public-service hotline, or 12315, the hotline of China's market watchdog.

Market watchdogs are using measures such as reminders, education, policy guidance and administrative penalties to regulate the market.