Beijing seeks stronger oversight of online platforms to protect consumers and ensure fair competition in the digital economy.
The Supreme People’s Court (SPC) of China has called on courts across the country to establish clearer compliance guidelines for digital platform operators and strengthen oversight of commercial practices in the online sector.
The country’s top judicial authority highlighted five representative cases involving the platform economy, saying that the rapid growth of online commerce, short-video platforms and livestreaming sales requires more clearly defined regulatory standards.
The SPC said the platform economy is a key component of the digital economy and plays an important role in developing new quality productive forces. However, it noted that insufficient competition rules and a lack of clear operational guidance have created risks for consumers and disrupted market order.
The court paid particular attention to livestreaming e-commerce, which has become an important channel for small and medium-sized enterprises to access the digital economy. The SPC said sustainable growth of the sector requires livestreamers and platforms to provide consumers with truthful, accurate and comprehensive information about products.
As an example, the court cited a case involving a Beijing-based livestreaming company with nearly 30 million followers. During a livestream, one of its hosts made negative comments about a liquor product produced by a Chongqing-based distillery, claiming that the drink contained edible alcohol rather than being traditionally fermented. The court found that the remarks could mislead consumers and damage the company’s commercial reputation.
The Beijing company was ordered to pay 300,000 yuan ($44,400) in compensation and legal costs. The SPC described the ruling as a model case for regulating commercial conduct in the livestreaming sector, stressing that product evaluations must be truthful, accurate and objective.
The other cases involved issues including virtual property, e-commerce transactions and platform responsibilities in online operations. The SPC said it would continue improving judicial rules to create a stable, fair, transparent and predictable business environment and support the healthy development of China’s digital economy.
Source: China Daily
