Led by China E-Commerce Association and China Nutrition and Health Food Association, at the end of September, 9 domestic e-commerce platforms including Alibaba, JD and Suning announced the “Convention on Anti-Fraud and Anti-False Promotion”. It involves the following 10 aspects:
More stringent platform access mechanism
Facilitate the establishment of a seller credibility system
Strengthen the censorship of advertisements
Optimize food safety management system
Establish seller management system
Prohibit the use of false promotion and fraud; platform service for trading may be suspended in case of violation.
Promote the communication with food competent authority
Help consumers to improve food fraud and false claims identification mechanisms
Unimpeded path for complaints
Promote cooperation with other e-commerce platforms.
False and exaggerated health food claims are commonplace in China especially on e-commerce platforms. Disease treatment claims are widely used to attract consumers despite their use on health foods being illegal (the sole purview of pharmaceutical agents). China’s recent promulgation of its first e-commerce law is an attempt to address many of these issues. Following on from the broad specifications outlined in the e-commerce law, this latest convention agreed on by domestic e-commerce giants offers more detailed rules to manage China’s e-commerce ecosystem. Boasting state-of-the-art technology, China’s ecommerce giants are better equipped to oversee advertising claims and will use “big data” to develop a more targeted strategy to offer incentives to retailers with excellent track records and punish violators.
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