Why Beijing has put e-commerce sector’s ‘refund-only’ policy and PDD under scrutiny

Quick Summary:

The State Administration for Market Regulation and the Ministry of Commerce have directed Pinduoduo owner PDD to fix this practice.

The intervention by the SAMR and the Commerce Ministry reflects how an unchecked and aggressive “refund without return” practice has been abused and hurt online sellers’ earnings.“The policy has been used by platforms to leverage their dominant position to attract consumers at the expense of merchants, leading to unfair practices and market distortion,” said Wu Libin, senior partner at M&T Lawyers.“Regulatory intervention aims to balance interests between platforms and merchants, while ensuring fair competition.

The regulators did not slap PDD with any punishment.

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Article Details

Author / Journalist: Wency Chen

Category: Business

Markets: Hong KongChina

Topics: China’s Merchants Consumers Policy Abused Been Report Market According Practice Platforms

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-12-12 @ 22:00:15 (4 hours ago)

News Timezone: GMT +8:00

News Source URL: scmp.com

Language: English

Article Length: 212 words

Reading Time: 2 minutes read

Sentences: 7 lines

Sentence Length: 31 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © SCMP

News ID: 24378990

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