The fifth session of China's 12th National People's Congress (NPC) Standing Committee concludes in Beijing, capital of China, Oct. 25, 2013. (Xinhua/Ding Lin)

 
China's top legislature Friday passed an amendment to the law on consumer rights and interests for the first time in 20 years, covering online shopping and regulation of e-commerce service providers.

Set to take effect on March 15, 2014, Consumer Rights Day, the amended law raises compensation fees for consumers, places the burden of proof on vendors and service providers in case of disputes, bans unauthorized disclosure of consumers' personal information, and sets up public interest litigation to remedy harm inflicted.

"The revised law adapts to a changing market," Qiu Baochang, president of the legal panel at China Consumers' Association, told the Global Times on Friday.

The rapid expansion of e-commerce and rising complaints from online shopping has drawn the attention of lawmakers.

Internet retail sales reached 1.3 trillion yuan ($212 billion) in 2012, accounting for 6.3 percent of China's total retail in 2012 and up from a mere 0.3 percent in 2006, official data showed.

A new article in the law grants consumers the rights to return goods purchased online for refund within seven days without justification, with only a few items excepted, including digital products sold via downloads and fresh and perishable goods.

"This article strengthens the protection of consumers' rights, as consumers may get incomplete or inaccurate information from online demonstration of merchandise," Qiu said.

The law also states that buyers must pay shipping fees for the return unless the purchased items are defective, "which is fair," Qiu said.

The latest poll on market intelligence portal searchchina.net.cn showed that 27.02 percent of those surveyed are satisfied with the new law, and 14.36 percent unsatisfied.

"This is good news for us, as it may prevent cases where some swindlers intentionally buy product, return it at no cost to themselves, and threaten to post negative comments that greatly affect our business," Zhou Li, a vendor of skin care products on taobao.com, China's largest online shopping platform, told the Global Times.

Consumers can also claim compensation from e-commerce service providers if they fail to provide information about sellers, such as names and valid contact details.

This may change the current practice of some online shopping websites such as Taobao, on which vendors use pseudonym for transactions, a practice which could post greater legal risks for Taobao under the revised law, Yao Jianfang, an e-commerce analyst at the China e-Business Research Center, told the Global Times on Friday.

China's e-commerce giant Alibaba Group said that the law doesn't only target e-commerce in an e-mail to the Global Times on late Friday.