Shanghai orders internet giants Pinduoduo and Meituan to conduct rectification-...

Shanghai orders internet giants Pinduoduo and Meituan to conduct rectification- PingWest

Shanghai orders internet giants Pinduoduo and Meituan to conduct rectification

May 11, 2021 0:48 am

On Monday, the Shanghai Consumer Council summoned representatives from popular e-commerce platform Pinduoduo and the on-demand delivery giant Meituan, asking them to conduct rectification and protect consumer rights.

Details: Pinduoduo was found to have problems with commodity quality, bogus products and infringements, compelling cancellation of orders, fake delivery, after-sales services and pricing tricks to lure new users, the council said.

The Shanghai-headquartered e-tailer was ordered to enhance the review of businesses' qualifications and stamp out fake and substandard products, punish businesses with fake delivery and bargain tricks, properly handle consumers' complaints, stop raising intermediary fees via its market advantage positions, and rectify irregularities in developing new users.

Meituan was found with refund disputes due to cancellation of orders, failure to deliver meals, fresh food and vegetables based on orders, and misleading consumers, the council said.

The platform was ordered to improve its service description and rules and remind consumers of important content concerning their rights and interests in an obvious way.

Context: China is speeding up its antitrust enforcement. In February, the Chinese authorities issued new antitrust guidelines for internet platforms. Then in April, State Administration for Market Regulation (SAMR) imposed a record fine of 18.2 billion yuan on Alibaba, warning other internet companies to heed that lesson.

The top market regulator described the overall development of China's platform economy as improving, but said no time should be wasted in correcting the way companies operate to ensure they comply with the law.

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