Cyber security Photo: IC

Two new regulations aiming to define the "safety line" for online consumption took effect on Sunday, which bar online platforms from using big data to engage in discriminatory pricing against frequent customers, and extend supervision to online human livestreamers.

The new regulations came aim a period of significant expansion in China's platform economy. An industry representative noted on Sunday that the new rules provide a more detailed and systematic framework that will foster healthier long-term development within the sector.

In January, the State Administration for Market Regulation (SAMR) and the Cyberspace Administration of China announced the new measures intended to ramp up supervision of online trading platforms. 

One measure, aiming to scrutinize online trading platforms, focuses on addressing unreasonable restrictions imposed by platforms on merchants and consumers. 

The new rules prohibit platforms from forcing merchants to offer "refund-only" options, impose mandatory transportation insurance, or participate in promotional activities. The rules also outlaw practices such as big data-enabled price discrimination, or unilateral changes to membership rules.

On January 7, Zhu Jianqiao, an official of the SAMR, said at a press conference that in recent years, there have been strong public concerns over issues such as platforms' "refund-only" policies, unreasonable fines and the downgrading of member privileges. 

In response, one regulation explicitly prohibits platforms from using their rules to unreasonably restrict merchants' autonomy, impose unreasonable fees or fines, or diminish members' rights, according to Zhu. The measure aims to safeguard merchants' independence and protect consumers' legitimate rights and interests.

New measures on regulating livestreaming e-commerce also came into effect on Sunday. The measures will bring artificial intelligence (AI)-generated content, including digital human streamers, under regulatory oversight, requiring clear labeling of AI-generated content. 

The rules stipulate that operators of livestreaming businesses must bear primary responsibility for false advertising, vulgar or suggestive content and other violations, starting to phase in clear boundaries for the industry. The measures represent the first time that AI-generated content and virtual streamers have been brought under regulatory supervision, explicitly prohibiting merchants from using technological means to impersonate others for false advertising purposes.

Platform enterprises are key participants in online trading activities such as livestreaming e-commerce and represent the "critical minority" in platform economy regulation. In this context, it is necessary to refine and clarify platform responsibilities across different scenarios, requiring them to fulfill legal obligations commensurate with their technological capabilities and market position, according to Wang Dan, an official of the SAMR.

"The regulations are very timely," Liu Dingding, a veteran technology industry analyst, told the Global Times on Sunday. 

In the past, we often said that the rapid development of technology and the internet led to a lag in regulation. However, judging from the current situation, in areas such as AI livestreamers, price discrimination based on big data, and refund-only policies, the regulation has kept pace with the development of the industry, which means that the scope of regulations has been fully extended to all new forms of the digital economy, Liu said.

A key advancement in the new rules is the inclusion of digital human anchors and AI-generated content, technologies some had argued warranted a regulatory grace period. This inclusion sends a definitive message: Any commercial activity, no matter how novel its technology, must adhere to the compliance framework.

Liu emphasized that new technologies do not operate outside the law, particularly when consumer rights are involved in online sales and livestreaming.

The governance of rules, which previously consisted mostly of broad, framework-based requirements, has now been refined and implemented in more detailed and concrete terms, he noted. 

China's retail sales, a major indicator of consumption strength, climbed 3.7 percent year-on-year in 2025, official data showed. Online retail sales jumped 8.6 percent to 15.97 trillion yuan ($2.3 trillion). In particular, online retail sales of physical goods rose 5.2 percent to 13.09 trillion yuan, accounting for 26.1 percent of total retail sales.