China’s new regulations banning big data-based price discrimination and regulating AI-generated content took effect on February 1.
On February 1, two new regulations aiming to define the "safety line" for online consumption took effect, which will bar online platforms from using big data to engage in discriminatory pricing against frequent customers, and, from now on, online human live-streamers are to be supervised.
The State Administration for Market Regulation and the Cyberspace Administration of China released the new measures to ramp up supervision of online trading platforms.
One measure, aiming to scrutinize online trading platforms, focuses on addressing unreasonable restrictions imposed by platforms on merchants and consumers.
The new rules prohibit platforms from forcing merchants to offer "refund-only" option, to impose mandatory transportation insurance, or to participate in promotional activities. The rules also outlaw practices such as big data-enabled price discrimination, or unilateral changes to membership rules.
Also, the new measures on regulating live-streaming e-commerce came into effect. Starting on February 1, the measures will bring AI-generated content, including digital human streamers, under regulatory oversight, requiring clear labeling of AI-generated content.
The rules also stipulate that the operators of live-streaming businesses must bear primary responsibility for false advertising, vulgar or suggestive content, and other violations, starting to phase in clear boundaries for the industry. The measures mark the first time that AI-generated content and virtual streamers have been brought under regulatory supervision, explicitly prohibiting merchants from using technological means to impersonate others for false advertising purposes.
Source: Global Times
