China tightens regulation of livestreaming e-commerce, online trading platforms

China's market regulator and cyberspace authorities unveiled two separate documents on Wednesday to further regulate the country's livestreaming e-commerce sector and online trading platforms.

The new regulation on livestreaming e-commerce, jointly published by the State Administration of Market Regulation and the Cyberspace Administration of China, stipulates the obligations and behavioral red lines for participants in the business.

Under the new rules, operators of livestreaming rooms, as well as marketing personnel, are prohibited from engaging in activities such as false advertising, commercial defamation, and the sale of illegal products and services.

The other regulation focuses on the rules governing online trading platforms, which aim to maintain the orderly conduct of online trading and protect the legitimate rights and interests of all parties.

Online platforms should not use their rules to impose unreasonable restrictions or fees on business activities on their platforms, nor should they limit consumer rights, engage in data-driven price discrimination, or unilaterally alter membership terms, according to the new regulation.

To ensure effective implementation, market and cyberspace authorities will enhance inter-departmental cooperation through information sharing and joint consultations. Online platforms are also encouraged to conduct self-assessments and to release compliance reports regularly.