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Two Ministries: Operators of online trading platforms shall not compel or indirectly compel merchants on their platforms to sell goods or provide services at prices below cost in accordance with their pricing rules.
The State Administration for Market Regulation and the Cyberspace Administration of China have issued the "Measures for the Supervision and Administration of Rules on Online Trading Platforms." The rules state that operators of online trading platforms shall not use platform rules to engage in the following acts that unreasonably restrict or impose unreasonable conditions on the independent business operations of merchants on the platform: (1) Compelling or indirectly compelling merchants on the platform to assume after-sales responsibilities such as refunds without returns, thereby infringing upon their legitimate rights and interests; (2) Compelling or indirectly compelling platform merchants to subscribe to value-added services not essential for their business operations, thereby increasing their operating costs; (3) Compelling or indirectly compelling platform merchants to participate in promotional or marketing activities; (4) Compelling or indirectly compelling platform merchants to conduct business activities exclusively on a specific platform; (5) Any other acts that impose unreasonable restrictions or attach unreasonable conditions on the independent business operations of operators on the platform. Operators of online trading platforms shall not compel or indirectly compel operators on the platform to sell goods or provide services at prices below cost in accordance with their pricing rules, thereby disrupting the order of market competition.
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