Beijing: the Chinese authorities have asked operators of electronic commerce platform to cease to insist on customer merchants without demanding the return of goods, to mitigate the financial pressure on merchants, two people familiar with the case said.
The government has met operators, including PDD assets and concluded that practice must end by July, from which only traders can initiate a refund, said the people, without specifying the dates.
The objective is to prevent the situation of merchants from becoming tenuous during the economic slowdown, said one of the people, who refused to be identified because the information is not public.
PDD and Peer JD.com refused to comment. The Alibaba group and the state administration for market regulations did not respond to requests for comments.
In July, hundreds of people gathered in an office of the PDD TEMU platform in southern China to protest against its reimbursement policy. The authorities, including the market regulator and the Ministry of Commerce, later ordered PDD to revise the policy.
This year, government organizations, including the market regulator and the National Development and Reform Commission, have increased criticism of what they abolish “involution style” competition.
In March, during the annual parliamentary session, the expression “complete rectification of the” Involution style “competition was integrated into the government work report.
The return-return reimbursement policy has been designed to benefit buyers and sellers for certain types of orders. PDD began to extend politics in 2021, which prompted its competitors to follow the plunge.
Various goods merchants that household appliances and appliances have said that policy has been harmful to their results because they risk losing both money and goods.
