Saturday, November 14, 2020

China Legislates New Law!

 China's internet surveillance body has enacted legislation for the first time to regulate the country's live streaming marketing industry as well as increase scrutiny in e-commerce markets owned by technology giant Alibaba Group and JD.Com.

Last week, China published a draft regulation aimed at preventing anti-monopoly behavior by internet platforms that removed hundreds of billions of dollars from the value of several tech giants including Alibaba and Tencent.

For all you know, Livestreaming marketing is claimed to be gaining popularity in the last 2 years including brands such as L’Oreal, Nike, Dyson. Meanwhile, online shoppers, and most Chinese e-commerce platforms now offer the option to buy and sell products through live streaming.

But the industry is also facing criticism by some buyers and brands accusing some publishers of directly misusing products or falsifying sales numbers.

As such, the Cyberspace Administration of China (CAC) has revealed that under enacted legislation, live streaming will require the identification of real names and social credit codes to the internet platforms they use as well as the need to submit periodic reports to local authorities.

In addition, the organization should also monitor their content periodically and stop any illegal advertising.

Additionally, behaviors such as promoting pyramid schemes, bad social habits or falsifying page views will be prohibited and the platform will need to create a credit rating list for live streaming and blacklist any illegal companies.

Meanwhile, Livestreaming was featured on Singles ‘Day, the world’s largest online sales event, which saw Alibaba record orders worth around $ 74 billion dollars through its platform on November 1-11.

In addition, the public has until November 28 to respond to the CAC regulatory plan.