Compiled from: People's Daily, FindLaw
 
The China General Chamber of Commerce recently issued a notice, requiring its subordinate Media Shopping Professional Committee to take the lead in drafting two new regulations: the "Basic Specifications for Video Live Shopping Operations and Services" and the "Evaluation Guide for the Integrity Service System of Online Shopping." These new regulations set standards for industry terminology and definitions, the quality of products promoted through "live-stream selling," hardware and software requirements for live streaming scenarios, behavioral norms for online streamers, operational management of industry enterprises, compliance of content publishing platforms, and regulatory oversight by supervisory authorities. This marks the first national standard in the industry and will be released and implemented in July this year.

 

 
Why were the new regulations formulated?
As a new entry point for traffic and retail, live-streaming e-commerce has shown great vitality amid the pandemic and even become popular nationwide. Hosts' sales performances have repeatedly set new records, with celebrities and entrepreneurs crossing over to try their hand, adding fuel to the fire; government officials have also stepped in to promote agricultural and sideline products. However, it is not uncommon for some hosts to prioritize traffic over quality. Shoppers frequently encounter issues such as receiving products that do not match descriptions or facing difficulties with after-sales service. The once-popular "agricultural aid fruits" have also been repeatedly criticized for arriving rotten.
 
According to the Ministry of Commerce, in the first quarter of this year, China saw over 4 million e-commerce live-streaming sessions, further enhancing the role of online retail in boosting consumption. "Live-streaming e-commerce" combines elements of TV shopping programs, online shopping invitations, and advertising endorsements, making its industrial chain relatively complex. Participants such as live-streamers, content platforms, and product supply companies lack clear management standards and regulatory mechanisms.
 
The purpose of formulating the new regulations is to standardize live-streaming shopping and online shopping in China, guide the healthy development of online shopping, and eliminate chaotic practices in live-streaming. This aims to gradually improve the management level of the online sales industry and protect the interests of consumers.

 

 
How to legally sell through live-streaming?
In fact, to address issues such as non-standard practices, incomplete regulatory systems, and the emergence of counterfeit products in live-streaming e-commerce, the ultimate solution lies in the law and regulation-based oversight. Although live-streaming e-commerce involves multiple platforms, entities, methods, and types of goods or services, appearing diverse, when looking beyond the surface, there are only two main categories.
 
Anything that sells self-operated goods or services under one's own name can be classified as sales, and such livestreaming e-commerce activities are no different from other e-commerce sales behaviors; anything that promotes, advertises, or directs traffic to others' goods or services can be classified as advertising or endorsement, and such livestreaming e-commerce activities can be regulated by reference to advertising production and distribution or celebrity endorsements.
 
From this perspective, issues arising from livestreaming e-commerce can find answers under relevant laws, with clear identification of rights and obligations subjects, as well as regulatory and rights-protection bases and pathways. For example, issues of selling "three-no" products or counterfeit and shoddy goods can be resolved under the Product Quality Law and the Trademark Law; issues of false or exaggerated advertising can be resolved under the Anti-Unfair Competition Law and the Advertising Law; issues of inadequate after-sales service can be resolved under the Consumer Rights Protection Law; and issues of false endorsements can also be resolved under the Advertising Law. Additionally, the E-Commerce Law clearly stipulates the regulatory responsibilities for e-commerce sales behaviors and e-commerce platforms' management of "infringements on consumer legitimate rights and interests by operators within the platform when selling goods or providing services." If these legal responsibilities each fulfill their roles and are properly implemented, they can drive and constrain livestreaming e-commerce activities onto the track of rule of law.

 

 
[1] The author's perspective
In my view, nothing can be accomplished without norms or standards, and the booming livestreaming e-commerce industry also needs to establish rules and set thresholds. The chaotic phenomena in livestreaming e-commerce cannot be ignored; if left unchecked, it will harm not only those whose rights are infringed but also the development trajectory of this popular consumption method. Currently, livestreaming e-commerce has become a mainstream sales method, yet China has very few laws and regulations in this area, making the introduction of new regulations timely. These new regulations not only ensure product quality but also regulate anchors, enterprises, and platforms, while also imposing requirements on regulatory authorities, addressing issues from multiple angles to achieve the goal of regulating this emerging industry.
 
At present, the pandemic has not yet been fully eliminated, and the country is vigorously stimulating consumption. Both the street-stall economy and livestreaming e-commerce play a positive role in China's economic development. Therefore, as livestreaming e-commerce rises, it is essential to establish a healthy atmosphere, allowing this emerging sales method to grow soundly rather than developing wildly in a mixed and chaotic environment.