Chinese regulator mulls punishment for illegal pricing activities
China’s top market watchdog on Friday released draft rules to punish illegal pricing activities. It detailed fines for malpractices that disrupt market order and the practice among e-commerce platforms of setting different prices based on customers’ purchasing preferences. According to the State Administration for Market Regulation, dumping products at rates lower than cost price and […]
China’s top market watchdog on Friday released draft rules to punish illegal pricing activities.
It detailed fines for malpractices that disrupt market order and the practice among e-commerce platforms of setting different prices based on customers’ purchasing preferences.
According to the State Administration for Market Regulation, dumping products at rates lower than cost price and disrupting normal production and operation order could incur fines less than five times the illegal income.
It said for the purpose of excluding competitors or monopolising the market, the practices of if no illegal income was involved, fines of one per cent to 10 per cent of the sales volume during the period of the illegal act could be imposed.
It said the practices among e-commerce platforms to set different prices based on consumers’ purchasing behaviours could levy fines of 0.1 per cent to 0.5 per cent of businesses’ annual sales or even business suspensions.
The draft noted that pricing malpractices is the new business models.
Other practices subject to penalties include price manipulation and driving up prices through collusion.
The regulator said the rules are aimed at maintaining normal pricing order and protecting the legitimate interests of consumers and business operators.
