China’s State Administration of Market Regulation (SAMR) and Ministry of Commerce have summoned PDD Holdings Inc. executives.

This is in response to concerns over PDD’s “refunds-first” policy.

Merchants argue it allows customers to claim refunds without returning goods, impacting their business.

The policy, designed to enhance customer satisfaction, faces criticism for withholding payments due to issues like delivery delays or mismatches. This has affected merchant revenue.

Discontent reached a peak over the summer, with a large protest occurring at PDD’s southern China offices.

Recent PDD developments