China Enforces New Ecommerce Law, Must Offer Hassle Free Return
China does joke around when it comes to enforcing laws. Action is taken immediately as soon as a decision has been made. We saw similar situations with Uber. China announced that they will require all ecommerce business to offer hassle free return within 7 days of purchase. This includes all third party sellers, startups, big companies.
There are some exceptions. These exceptions include food, virtual items, non refundable items, digital downloads, softwares, pirated materials and many more. Some stores are allowed to require a return mail fee or a restocking fee, but all merchants are required to return regardless of the reason. In the USA, if a similar law like this was passed, people might be extremely unhappy. Most ecommerce startups and giants in China claims that this wont effect their business. If the item is damaged or not in the original condition, then the seller has the rights to deny the return. The Chinese ecommerce giants such as Alibaba, Taobao, Tmall etc. have no complaint about this law because they feel that this makes customers feel safer. The bigger companies have been enforcing return policies for a long time, but this new law might be a huge impact on individual or small business owners. Scams occur quite often in China.
SAIC’s newest directive includes rules on real-name identification for third-party online merchants, as well as amendments to online business laws from 2010 pertaining to anti-unfair competition, advertising, and trademarks. It is part of the internet privacy act that China has been enforcing in the recent years.