22 Chinese e-commerce and logistics companies including Alibaba, Kaola, Yunji, Meituan and SF Express have launched a new “e-commerce dishonesty punishment league” in Zhejiang province in order to improve trust and efficiency in China’s online economy.
The launch of the league was announced on 8 November, with plans to establish “daily work mechanisms and adopt coordinated action to implement coordinated punishment of dishonest conduct in the e-commerce sphere,” as well as “establish basic assessment standards for dishonesty [conduct] penalties.”
Dishonest conduct files for business entities will also be established and regularly updated, as well as made available for sharing.
Depending upon the severity of dishonest conduct the league will apply a range of punitive measures including:
- Restrictions on the establishment of new accounts;
- Closure or termination of existing accounts;
- Restriction on the provision of goods and services;
- Restriction on the participation in various sales activities;
- Deduction of credit points;
- Reductions in credit ratings;
- Restrictions on account authorisations;
- Public announcements;
- Restriction on participation in e-commerce platforms;
- Restriction on logistics operations;
- Restrictions on internet advertising and promotion.
The league will be subject to the guidance of government departments including the Zhejiang province market supervision management authority.