China tightens watch on growing e-commerce sector
The law is beginning to catch up with the mainland online sector that has seen trade soar from US$3 billion to US$64 billion in three years
E-commerce has been growing by leaps and bounds on the mainland but the laws regulating this sector are only just beginning to catch up.
In the space of just three years, online sales on the mainland soared from US$3 billion to US$64 billion in 2012, a figure that took the United States a decade to achieve.
The mainland became the world's second-largest online retail market last year, with business-to-consumer (B2C) growth expected to average up to 34 per cent over the next five years, according to forecasts.
In spite of the exponential growth, little has been done to regulate these transactions. However, the recent third plenum announced several laws that will take effect in less than two months.
Among the changes on March 15, consumers will be able to return goods within seven days without specifying a reason as long as they are in "good condition", with exceptions for custom-made products and perishables, among others.
Claudio de Bedin, a lawyer at the firm de Bedin & Lee, who advises European clients on entering the mainland market, said: "I think the law is extremely important because it affects things at a time when e-commerce is taking off in China. It's common to see working women shop at [their office computers] during lunch. It makes retailers more aware of the products they are selling, and ensure products don't negatively affect the health of customers. They wouldn't want to lose money when goods are returned."
