Get 40% Off
🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

China regulator to launch campaign to clean up e-commerce, online ads

Published 05/05/2016, 11:56
Updated 05/05/2016, 12:00
© Reuters. A logo of Alibaba Group is pictured at its headquarters in Hangzhou
BIDU
-
JD
-
BABA
-

By Paul Carsten

BEIJING (Reuters) - Chinese authorities will launch a campaign to clean up e-commerce - targeting trademark violations, counterfeit and poor quality products and the faking of transactions to boost a merchant's online rankings, the official People's Daily said.

It did not name any specific companies but the move has the potential to affect internet firms such as Alibaba Group Holding Ltd (N:BABA), JD.com Inc (O:JD) and Baidu Inc (O:BIDU).

The campaign by the State Administration for Industry and Commerce will run from May to November, the paper said.

The regulator was quoted as saying it would step up its oversight and give out harsher punishments for those found in violation of regulations.

It also called out false and illegal advertising online, according to the People's Daily, a subject which has caused controversy this week.

Chinese search giant Baidu is being investigated by the country's internet regulator over the death of a university student who used the Chinese search engine to look for treatment for his cancer.

Before dying, Wei Zexi accused Baidu online of promoting false medical information, as well as the hospital for misleading advertising in claiming a high success rate for its treatment.

A Baidu spokeswoman declined to comment on Thursday about the move by SAIC. Alibaba did not immediately respond to a request for comment.

A JD.com spokesman said: "Our business model targets the scourge of counterfeits and we support efforts to protect consumers, wherever they may shop online."

Chinese authorities regularly launch such campaigns, and this is not the first to target e-commerce, though their effectiveness is not always obvious.

© Reuters. A logo of Alibaba Group is pictured at its headquarters in Hangzhou

Alibaba will announce its earnings results for the first three months of 2016 on Thursday. JD.com will announce its results for the same period on Monday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.