China unveils draft rules to regulate online platform pricing

China's National Development and Reform Commission, along with two other ministries, unveiled draft rules on Saturday to strengthen the pricing practices of internet platforms, as the country seeks to promote fairer competition and greater transparency in the digital economy.

According to a joint announcement from the NDRC, the State Administration for Market Regulation and the Cyberspace Administration of China, the draft seeks to address gaps in online pricing, especially in areas such as price display, big-data-driven pricing and dynamic promotions, which have drawn significant consumer attention. The draft is now open for public feedback.

Under the proposal, internet platforms would be barred from unfairly restricting merchants' pricing, including tactics to reduce store traffic or remove products.

Platforms would also be required to follow stricter rules on price labeling and increase transparency in promotional activities, subsidies, differential and dynamic pricing, and ranking practices.

The draft further sets standards for price competition and integrity to maintain market order, calling for closer regulatory coordination, stronger industry self-discipline and improved compliance systems within platforms.

"The platform economy involves many operators whose pricing behavior directly affects consumers. Refining these rules will help ensure orderly, fair competition and protect the rights of both businesses and consumers," the NDRC said.