China’s government to Alibaba, JD, etc.: no misleading customers this Singles Day

Singles Day – November 11 – is right around the corner. And these days in China that means one thing: massive sales on virtually every ecommerce site you can think of. But with massive sales also comes the opportunity for vendors to mislead and swindle consumers into thinking they’re getting a good deal when they’re not. And according to Techweb, China’s State Administration for Industry and Commerce (SAIC) recently held a meeting with ten of China’s top ecommerce companies, including Alibaba and JD, to send a clear message: platforms must take steps before sales are publicized to ensure the deals are legit.

Specifically, the SAIC is worried about the following abuses, which it has gotten consumer complaints about following previous years’ Singles Day sales:

• Artificially raising prices so that they can then be lowered to make the normal price look like a great deal.
• Claiming to be out of stock to avoid selling low-priced items to too many customers when stocks are actually sufficient to honor customer orders.
• Changing orders or canceling sales (again, to avoid having to sell too many items at a discount)
• Advertising using superlatives like “the lowest price on the web” or “lowest price ever”, which are illegal.

The SAIC says that it’s on platforms like Alibaba’s Tmall (for example) to be sure that its vendors aren’t scamming their consumers in these ways by checking market prices, and investigating vendors and their stock levels. According to SAIC vice-chief Gan Lin, at present oversight in this area is not strict enough, and China’s major ecommerce marketplaces have apparently been instructed to do better.

At the same time, the SAIC has also called on consumers to be rational as they shop this Singles Day. So consider this your warning from us too: if you’re planning on going on a spending spree next week, be sure you’re actually getting a deal before you buy. (And remember, if you buy something at 50 percent off that you wouldn’t have bought otherwise, you’re not actually saving any money at all).

See: Amazon will offer global shopping, fast delivery in China starting this Singles Day

(Source: Techweb)