China Tightens Regulation of Livestreaming E-Commerce and Online Platforms

Beijing — China’s market regulators and cyberspace authorities on Wednesday released two separate sets of regulations aimed at further standardizing and tightening oversight of the livestreaming e-commerce sector and online trading platforms.

The new rules on livestreaming e-commerce, jointly issued by the State Administration of Market Regulation and the Cyberspace Administration of China, clearly define the responsibilities of all parties involved in the sector and set explicit behavioral “red lines.”

Under the new framework, entities operating livestreaming studios and individuals involved in promotion are prohibited from engaging in activities such as false advertising, commercial defamation, and the sale of illegal goods and services. Such practices are subject to strict bans.

Meanwhile, another set of regulations focuses on codes of conduct for the operation of online trading platforms. The objective is to bring greater order to online commerce while safeguarding the legitimate rights and interests of all stakeholders.

According to the rules, online platforms are not allowed to impose unjustified restrictions on business activities under the guise of their own regulations, levy unreasonable fees, limit consumer rights, engage in price discrimination through the use of data, or unilaterally alter membership-related terms and conditions.

To ensure effective implementation, authorities said information sharing and joint consultations between market regulators and cyberspace officials will be strengthened to enhance inter-agency cooperation. Online platforms are also encouraged to conduct self-assessments and regularly publish compliance reports.

This move is widely seen as a signal that the Chinese government aims to rein in disorder emerging in online commerce and livestreaming e-commerce amid the rapid expansion of the digital economy, while reinforcing transparency and consumer protection.