Officials in charge of the National Development and Reform Commission answered questions from journalists regarding the "Draft Regulations on Price Behavior of Internet Platforms (Soliciting Opinions)."

On August 23, relevant officials from the National Development and Reform Commission answered questions from reporters on the "Internet Platform Price Behavior Rules (Draft for Soliciting Opinions)". It was mentioned that in Chapter four of the "Behavior Rules", focusing on the theme of "regulating price competition behavior", detailed provisions were made on the recognition standards for unfair price behaviors such as low-price dumping, price discrimination, price fraud, price collusion, and price manipulation in the platform economy field, to prevent disorderly competition from distorting resource allocation and price signals. In addition, the "Behavior Rules" stipulate that platform operators and operators within the platform must not collude with each other, manipulate market prices; they must not fabricate, spread price increase information, and inflate prices. The original article is as follows: Officials from the National Development and Reform Commission answered questions from reporters on the "Internet Platform Price Behavior Rules (Draft for Soliciting Opinions)" In order to implement the decisions and arrangements of the Central Committee of the Communist Party of China and the State Council, promote the healthy development of the platform economy, the National Development and Reform Commission, the State Administration for Market Regulation, and the Cyberspace Administration of China jointly drafted the "Internet Platform Price Behavior Rules (Draft for Soliciting Opinions) " (hereinafter referred to as the "Behavior Rules"), which was recently open for public opinions. Officials from the National Development and Reform Commission answered questions from reporters in an interview. I. What is the background for the introduction of the "Behavior Rules"? In recent years, China's platform economy has developed rapidly, playing a positive role in empowering the real economy, developing new productive forces, and meeting the needs of the people. The behavior of operators in the platform economy involves the interests of consumers and has attracted widespread attention. Laws and regulations such as the Price Law, the Anti-Unfair Competition Law, the E-commerce Law, and the Consumer Rights Protection Law provide general provisions on price behaviors of operators from different perspectives. However, in the field of platform economy, further refinement and implementation are needed to build a transparent and predictable normalized price regulatory mechanism, guide operators to operate in compliance with the law. The National Development and Reform Commission, the State Administration for Market Regulation, and the Cyberspace Administration of China drafted the "Behavior Rules" based on the opinions from relevant departments, localities, platform operators, operators within the platform, experts in the economic and legal fields, consumers, and social groups. II. What is the overall idea of formulating the "Behavior Rules"? The "Behavior Rules" adhere to the dual principles of promoting development and regulating supervision, combining pre-guidance with mid-range and post-event supervision, maintaining the stability of the regulatory system in accordance with current laws and regulations, focusing on regulating price behaviors, promoting openness and transparency, enhancing overall coordination, protecting the legitimate rights and interests of operators and consumers, and promoting the healthy development of the platform economy. 1. Regulate price behavior. In terms of big data pricing, price subsidies, price integrity, etc., regulate the price behavior of platform operators and operators within the platform according to the law, specify clear behavior norms for operators' autonomous pricing and price competition, and create a market environment of orderly competition and fair competition. 2. Promote openness and transparency. Require platform operators and operators within the platform to strictly comply with the rules of clear pricing, improve the transparency of price rules, timely disclose fee changes, and better accept social supervision. 3. Enhance overall coordination. Combining the characteristics of price behavior in the platform economy, comprehensively apply relevant laws and regulations on price behavior, give full play to the role of government departments, industry associations, and platform operators, and form a good situation of coordinated governance. III. Which operators do the "Behavior Rules" apply to? The "Behavior Rules" apply to platform operators and operators within the platform. Platform operators refer to legal persons or non-legal persons who provide platform services such as online operating venues, transaction matching, and information dissemination, which are commonly referred to as platform enterprises; while operators within the platform refer to operators who sell goods or provide services through a platform, namely platform merchants. Platform operators who sell goods or provide services themselves within the platform should also comply with the regulations on operators within the platform. Self-operated website operators and other operators involved in the platform economy are subject to the "Behavior Rules". IV. How do the "Behavior Rules" guide operators to autonomously price in accordance with the law? Chapter 2 of the "Behavior Rules" focuses on the theme of "operator's autonomous pricing", emphasizing that platform operators and operators within the platform have the right to autonomously price in accordance with the law, regulating the fee collection behavior of platform operators towards operators within the platform and protecting the right of operators within the platform to autonomously set prices. Examples are: One is to clarify that operators autonomously price according to the law. Platform operators and operators within the platform should price independently in accordance with the law and reasonably set price levels. Contracts, orders, etc., should be used between platform operators, operators within the platform, and between operators and consumers to specify and change prices. Operators are encouraged to innovate in technology and business models, improve product and service quality, and benefit consumers. Two is to regulate the fee collection behavior of platform operators towards operators within the platform. Platform operators are required to establish reasonable fee standards and publicly disclose them. Any changes in fee items, rules, standards, etc., should be openly solicited for opinions from operators within the platform in a prominent position on the homepage. Three is to protect the right of operators within the platform to autonomously set prices. Platform operators are prohibited from violating Article 35 of the E-commerce Law, restricting flow, blocking stores, removing products or services, etc., and unreasonably restricting or attaching unreasonable conditions to the price behavior of operators within the platform. V. What requirements does the "Behavior Rules" propose for regulating operators' price labeling behavior? Chapter 3 of the "Behavior Rules" focuses on the theme of "clear pricing", specifying the price labeling norms that platform operators and operators within the platform need to comply with when selling goods or providing services, and making specific requirements for publicizing rules on price promotions, subsidies, differential pricing, dynamic pricing, bidding rankings, etc. Examples are: 1. Clearly marked prices. Platform operators and operators within the platform should clearly indicate prices or fee standards on their websites, application software (APPs), mini-programs; the sale of goods should indicate the name, price, and pricing unit of the goods, and the provision of services should indicate the service items, service content as well as prices or pricing methods; no additional charges should be added outside the marked price, and no unmarked fees should be charged. 2. Clear promotion rules. Platform operators and operators within the platform are required to clearly indicate the discounts and price reductions genuinely, and if discounts are offered through points, coupons, vouchers, vouchers, prepayments, etc., they should clearly specify the calculation method in a prominent manner. 3. Clear platform subsidies. Platform operators are required to carry out subsidies fairly and justly, not falsely or exaggerate the amount and intensity of the subsidies; subsidies and related rules should be prominently displayed on the website or APP, specify the subsidy objects, subsidy methods, participation conditions, start and end times, and other information. 4. Clear differential pricing, dynamic pricing rules. Platform operators and operators within the platform should publicly announce rules if they charge different prices for consumers under different trading conditions. If there is dynamic pricing such as time-based pricing, the dynamic pricing rules should be publicized and factors affecting prices should be clearly explained. VI. How does the "Behavior Rules" regulate operators' price competition behavior? Chapter 4 of the "Behavior Rules" focuses on the theme of "regulating price competition behavior", elaborating on recognition standards for improper price behaviors such as low-price dumping, price discrimination, price fraud, price collusion, and price inflation in the platform economy field, to prevent disorderly competition from distorting resource allocation and price signals. One is to maintain the order of price competition. The rules stipulate that platform operators are not allowed to force or indirectly force operators within the platform to sell goods at prices below cost according to their pricing rules, disrupting the market competition order. It is important to note that the business model of platform operators is long-term free for users and conducive to promoting innovation and progress, and enhancing the long-term welfare of operators and consumers may not be recognized as low-price dumping; if platform operators, operators within the platform handle fresh goods, seasonal goods, overstocked goods, or goods close to expiry at a reduced price, or have valid reasons for price reductions, it does not qualify as low-price dumping. Two is to regulate big data pricing. It is stipulated that platform operators and operators within the platform shall not, without legitimate reasons, set different prices or fee standards for the same goods or services under equivalent trading conditions based on unacknowledged information such as payment willingness, payment capabilities, consumer preferences, and habits. Three is to specify price integrity requirements. It is stipulated that platform operators and operators within the platform shall not use deceptive or misleading language and images to indicate prices, shall not sell goods or provide services through false discounts, price reductions, price comparisons, shall not deceive consumers or other operators with low prices, or settle at high prices. In addition, the "Behavior Rules" stipulate that platform operators and operators within the platform must not collude, manipulate market prices; they must not fabricate, disseminate price increase information, and inflate prices. VII. How does the "Behavior Rules" build a synergistic governance mechanism? Chapter 6 of the "Behavior Rules" focuses on the theme of "synergistic governance", fully leveraging the role of all parties, strengthening cross-departmental supervision, platform compliance management, industry self-discipline, building a long-term mechanism, effectively regulating the price order in the platform economy field, and creating a fair competitive market environment. 1. Cross-departmental supervision. The departments of Development and Reform, Market Regulation, and Cyberspace will supervise the price behavior in the platform economy based on related laws, regulations, rules, and the "Behavior Rules", provide timely reminders, warnings, talks, and inspections to platform operators and operators within the platform. 2. Platform compliance management. It requires platform operators to improve internal compliance management systems, regulate their own price behavior; establish sound platform management rules, guide operators within the platform to operate in compliance; establish channels for price-related complaints, take necessary measures to stop violations in time; establish a system for controlling the quality of platform products, carry out quality inspections, and handle quality violations; file relevant algorithms for price behavior in accordance with the law, cooperate with relevant departments such as Cyberspace to conduct security assessments and supervision checks. 3. Industry self-discipline. Industry associations and chambers of commerce are required to actively play a role in industry self-discipline, and guide operators to consciously regulate price behavior in accordance with the law. Encourage industry associations and chambers of commerce to establish communication and negotiation mechanisms with platform operators, better safeguard the legitimate rights and interests of operators within the platform, especially small and medium-sized merchants. VIII. When will the "Behavior Rules" be implemented? The public consultation period for the "Behavior Rules" will be one month. After the end of the public consultation period, we will conduct in-depth research on various opinions, fully absorb and adopt them, and strictly follow the relevant procedures for promulgation. When the document is issued, an assessment and argumentation will be made, and a necessary adjustment period will be left according to the actual situation, so that operators can improve internal management systems, regulate their own price behaviors according to the new regulatory requirements, and operate in compliance with the law. This article is compiled from the official website of the "National Development and Reform Commission" and edited by GMTEight: Liu Jiayin.