SAMR released the Notice on the 2018 Plan of Special Action (Net Sword Action) for Online Market Regulation

The administrations for industry and commerce, quality and technical supervision, food and drug inspection (authorities for market regulation), development and reform commissions, communications administrations, public security departments (bureaus), commerce departments (bureaus), cyberspace offices, post administrations of different provinces, autonomous regions and cities directly under the central government, Guangdong Branch of General Administration of Customs and the directly affiliated customs:

In order to carry out the gist of the 19th CPC National Congress in an in-depth way, integrate the functions and strength of members of thejoint inter-ministerial conference on online market regulation, adapt to the new situation, new tasks and new requirements of online market supervision and create an honest,creditable and fair competition-based environment of online market, the members of joint inter-ministerial conference on online market regulation decide tojointly launch the 2018 special operation (Net Sword Action) for online market regulation from May to November. The Plan is now issued to you for implementation.

State Administration for Market Regulation

National Development and Research Commission

Ministry of Industry and Information Technology

Ministry of Public Security Ministry of Commerce

General Administration of Customs

Cyberspace Administration of China

State Post Bureau

June 4, 2018

The 2018 Plan of Special Action (Net Sword Action) on Online Market Supervision (framework)

In order to carry out the gist of the 19th CPC National Congress in an in-depth way, implement the 13th Five-year Planning for Market Regulation of the State Counciland create an honest and creditable online market environment in favor of fair competition based on the requirements of high-quality development, the members of joint inter-ministerial conference on online market supervision decide to jointly launch the 2018 special operation (Net Sword Action)for online market regulation from May to November. The framework of the Plan is listed as follows:

I. General Objective

II. Key Work

i. Regulate the qualification of online business entities and ensure the traceability of online business activities.

ii. Crack down on IPR infringement and counterfeiting of online goods and explore the establishment of a full-chain supervision mechanism of production, circulation and consumption.

iii. Rectify the act of Internet-based unfair competition and maintain the market order for fair competition

iv. Adhere to the orientation of correct publicity, increase efforts to crack down on online false publicity and false or illegal advertisement.

v. Regulate the clauses and format of online contracts and crack down on other illegal or regulation-violating acts online.

III. Special Requirements

i.highlight the problem-oriented approach, earnestly deploy and organize the work

ii. carry out and strengthen the law enforcement based on the laws and regulations

iii. Put in place the responsibilities of platform and promote the social co-governance

iv. improve the technology and optimize the supervision and regulation

v.improve the credit system and push forward the online warning.

IV. Timeline Arrangement

i. mobilization and deployment (May to June)

ii. Organization and implementation (July to November)

iii. Supervision and summary (October to November)   

The local authorities are required to submit the summary, statistics and typical casesof special operation of their own system as well as the documents about joint law enforcement to the superior authority and copy to the counterparts of market regulation. If an emergency occurs, please report it to the local government and local CPC Committee and the superior competent authority.

(Source: SAMR Website)