China presents measures for protection of online consumers

China will bar online platforms from using big data to engage in discriminatory pricing against frequent customers, as officials presented new measures for the regulation of the platform economy on Wednesday.

The State Administration for Market Regulation and the Cyberspace Administration of China released the new measures for the supervision of online trading platform rules. The latest measures aim to standardize the formulation, amendment and implementation of platform rules, safeguard online trading order and protect the legitimate rights of merchants and consumers.

The measures target what regulators described as a "critical minority" — online platform operators — and seek to further clarify and strengthen their responsibilities, drawing on recent enforcement experience.

Under the measures, platforms are forbidden from implementing the so-called "big data kill-the-familiar" practices. It is a form of algorithm-driven price discrimination in which long-term or repeat users are charged higher prices than new customers.

The measures also spell out more detailed requirements on data, information and network security, as well as on legal protections for both consumers and merchants operating on platforms.

Platforms must include clear data and information security provisions in their rules, define standards for how merchants handle personal data, and specify obligations related to the online protection of minors.