Comments Sought on the E-commerce Law of the People's Republic of China (Draft)

Comments Sought on the E-commerce Law of the People's Republic of China (Draft)
Comments Sought on the E-commerce Law of the People's Republic of China (Draft)

December 27, 2016

The E-commerce Law of the People's Republic of China (Draft) has been deliberated at the 25th session of the Standing Committee of the Twelfth National People's Congress of the People's Republic of China. The E-commerce Law of the People's Republic of China (Draft) is hereby released at http://www.npc.gov.cn/. The public may directly log onto http://www.npc.gov.cn/ to give opinions, or post opinions to the Commission of Legislative Affairs of the Standing Committee of the National People's Congress (No.1 Qianmen West Avenue, Xicheng District, Beijing Municipality, postcode: 100805. Mark "comments sought on the draft of the E-commerce Law" on the envelope). Deadline for comments: January 26, 2017.

E-commerce Law of the People's Republic of China (Draft)

Chapter I General Provisions

Article 1 In order to promote the sustainable and healthy development of e-commerce, regulate market order and guarantee the legitimate rights and interests of all the subjects during e-commerce activities, the E-commerce Law of the People's Republic of China (Draft) (this "Law") is hereby formulated.

Article 2 This Law shall apply to e-commerce activities which occur within the territory of the People's Republic of China or in which any domestic e-commerce operating entity or consumer participates.

Article 3 The e-commerce mentioned hereunder refers to business activities of commodity transactions or service transactions via information networks such as the Internet.
If any law or administrative regulations has/have any special provisions on commodity transactions or service transactions, such provisions shall prevail. This Law does not apply to financial products or services or services such as playing audio and video programs by virtue of information networks and network publication.

Article 4 The State encourages the development of new types of e-commerce, innovation of business modes, promotion of the application of new technologies in e-commerce and creation of a market environment favorable for innovative development.

Article 5 Principles of free will, fairness and good faith shall be followed, and generally recognized business ethics shall be observed for e-commerce activities.
The State encourages the building of an e-commerce credit system, establishment and perfection of systems of e-commerce credit records, credit evaluations and credit management, and improvement of the e-commerce credit service guarantee system.

Article 6 The State plays a decisive role in the market in regard to resource allocation, and encourages and supports e-commerce operating entities to achieve independent operation and self-discipline management in accordance with the law.

Article 7 The State Council and local people's governments at the county level or above shall integrate e-commerce development into the national economic and social development plan, formulate scientific and reasonable industrial policies, improve the construction of standards and systems, and improve and innovate e-commerce management systems and modes as per characteristics of e-commerce activities.

Article 8 E-commerce industrial organizations and e-commerce operating entities shall consolidate industry self-discipline, establish and perfect industrial standards and network standards, guide operators in the industry to compete fairly, and push forward industrial sincerity construction.
The State encourages, supports and guides e-commerce industrial organizations, e-commerce operating entities and consumers to jointly participate in e-commerce market governance.

Article 9 The State equally treats online and offline commercial activities, and impels online and offline integrative development. The people's governments and relevant departments shall not take discriminatory policies or measures.

Article 10 The State maintains e-commerce transaction security, protects the information of e-commerce users, encourages the exchange and sharing of e-commerce data, and guarantees the lawful and orderly flow and reasonable use of e-commerce data.

Chapter II E-commerce Operating Entities

Section 1 General Provisions

Article 11 The e-commerce operating entities mentioned hereunder refer to e-commerce third-party platforms and e-commerce operators.
The e-commerce third-party platforms mentioned hereunder refer to legal persons or other organizations providing services such as webpages, virtual business sites, trade matching and information release for both parties or several parties to transactions during e-commerce activities.
The e-commerce operators mentioned hereunder refer to natural persons, legal persons or other organizations selling commodities or providing services via information networks such as the Internet, other than the e-commerce third-party platforms.

Article 12 The e-commerce operating entities shall process industrial and commercial registration in accordance with the law, except for the provision of labor services by individual skills, family handicrafts and self-production and sales of agricultural products for which it is unnecessary to obtain a license in accordance with the law, as well as other circumstances under which industrial and commercial registration is not needed in accordance with the laws and regulations. Specific measures will be stipulated by the State Council.
A natural person, who conducts e-commerce activities via an e-commerce third-party platform, shall provide his/her authentic information such as the name, address, identity certificate and contact information for the said platform.

Article 13 The e-commerce operating entities shall conduct business activities in accordance with the law. If it is necessary to obtain a relevant administrative license, they shall apply for the administrative license in accordance with the law.

Article 14 The e-commerce operating entities shall sell commodities or provide services in accordance with laws and administrative regulations.
No e-commerce operating entity shall sell or provide any commodity or service prohibited by laws or administrative regulations.

Article 15 The e-commerce operating entities shall fulfill tax obligations in accordance with the law, and be entitled to enjoy tax preferences according to special tax laws.

Article 16 The e-commerce operating entities shall issue paper invoices or electronic invoices for selling commodities or providing services.
Electronic invoices shall have the same legal force as paper ones.

Article 17 An e-commerce operating entity shall publish the information of the business license thereof and the administrative license information relating to the business thereof at a prominent position of the homepage.
A change in the business license information or administrative license information of an e-commerce operating entity shall be published in a timely manner.

Article 18 Where an e-commerce operator independently terminates e-commerce activities, the said operator shall publish relevant information at a prominent position of the homepage thereof 60 days in advance, and take necessary measures to guarantee consumers' legitimate rights and interests.
Where an e-commerce third-party platform independently terminates transaction platform services, it shall publish the relevant information at a prominent position of the homepage thereof 90 days in advance, and take necessary measures to guarantee the legitimate rights and interests of relevant operators and consumers.

Section 2 E-commerce Third-party Platforms

Article 19 An e-commerce third-party platform shall examine and register the information such as identity and administrative license of operators applying for selling commodities or providing services on the platform, establish registration archives, and regularly verify and update them.
An e-commerce third-party platform shall examine and monitor the information on commodities or services on the platform. If any circumstance set out in Article 13 or 14 hereof is found out, it shall promptly report the same to the relevant department and take necessary measures in accordance with the law.

Article 20 The e-commerce third-party platforms shall provide technical supports and assistances for law enforcement activities of relevant departments in accordance with the law.
Where taking a measure such as warning or suspension or termination of services for an operator as per a platform service agreement or transaction rules, an e-commerce third-party platform shall publish the same in a timely manner, and submit the information on the suspected illegality to the relevant department.

Article 21 The e-commerce third-party platforms shall take necessary technical means and management measures to guarantee the normal operation of the platforms, provide necessary and reliable transaction environments and services, and guarantee e-commerce transaction security.
The e-commerce third-party platforms shall establish an emergency plan. In the event of any emergency, they may initiate the emergency plan, take corresponding remedial measures, and report the same to relevant departments in accordance with the law.

Article 22 The e-commerce third-party platforms shall follow principles of openness, fairness and justice, formulate platform service agreements and transaction rules, and define rights and obligations in respect of entering into and exit from the platforms, commodity and service quality guarantee, protection of consumers' rights and interests and so on.
The platform service agreements and transaction rules shall be continuously displayed in a prominent way on the e-commerce third-party platforms in order to technically guarantee that operators and consumers can read and save them conveniently and completely, and be filed with relevant departments according to provisions.
The e-commerce third-party platforms shall establish and perfect a credit evaluation system, publish credit evaluation rules, and provide objective, impartial and reasonable credit evaluations.

Article 23 The e-commerce third-party platforms shall modify transaction rules in an open and reasonable way, seek public comments at a prominent position of the homepage thereof, take reasonable measures to ensure that all relevant parties can express their opinions in a timely manner and in full, and publish modified contents at least seven days in advance.
Where an operator does not accept the modified contents and applies to exit from an e-commerce third-party platform, the said platform shall allow the exit thereof, and undertake relevant responsibilities as per the transaction rules before modification.

Article 24 Where an e-commerce third-party platform operates the self-operated business of commodities or services, it shall differentiate the self-operated business and the business conducted by operators on the platform in an apparent way, so as not to mislead consumers.

Article 25 The e-commerce third-party platforms shall record and save the commodity and service information released and transaction information on the platform, and keep such information authentic, complete and accurate.
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