City lays out new rules for livestream marketing and sales

A guideline was released by Shanghai's market regulators on Wednesday to regulate livestream marketing.

A blacklist system targeting irregularities by livestreamers will be established. The first guideline of its kind at a provincial level, it involves a variety of areas such as product quality, advertising, unfair competition, consumer protection, pricing, contracts, food safety and intellectual property rights protection, according to the Shanghai Administration for Market Regulation.

It requires operators of livestreaming platforms to enhance their review of products and marketing activities, and bans businesses on livestreaming platforms from signing deals including clauses such as "lowest prices" or other unreasonable or exclusive clauses.

Livestreamers must be above 16 and they should provide information on goods or services honestly and accurately.

The guideline also lists commodities banned from being sold on livestreaming platforms.

The include prescription drugs, cigarettes and baby formula and beverages that are claimed wholly or partially replacing breast milk.

For perishable food, livestreaming marketing should be conducted cautiously to prevent disputes.

The guideline also highlights the guaranteed legal rights and interests of minors and elderly citizens.

Businesses should inform consumers of return rules, the handling of disputes and compensation.

The guideline encourages livestreaming platforms to establish rapid handling mechanisms for dealing with consumer disputes.