The State Administration for Market Regulation (SAMR) has recently issued the Compliance Guidelines for Fee Practices of Online Transaction Platforms (the "Guidelines"), effective immediately.
The Guidelines require platforms to fulfill the primary responsibility for compliance management by improving their compliance management bodies; appointing dedicated compliance management personnel; promptly internalizing regulatory requirements into internal compliance policies; establishing a risk identification and assessment mechanism for unreasonable fee practices; strengthening the pre-emptive compliance review mechanism to prevent unreasonable fee risks; and enhancing compliance training to foster a culture of compliance. The Guidelines also establish the obligation for platforms to publicly disclose their fee charging rules, requiring platforms to continuously display their platform agreements for paid services and transaction rules, among other information, prominently on their homepage. Any modifications to fee rules are required to be publicly consulted in accordance with law. The Guidelines specify the retention period for historical versions of fee charging rules, mandating platforms to fully preserve all versions of the fee charging rules issued within the three years prior to the effective date of the latest amended version. The Guidelines further prohibit eight types of unreasonable fee practices, including "imposing duplicate charges."