The E-commerce Law draft for 3rd reading increases punishment on illegal E-businesses

On June 19,the E-commerce Law (draft) for the third reading was discussed and reviewed in different panels at the 3rdmeeting of the 13thStanding Committee of the National People’s Congress. The issues of information security, registration of individual business merchants, counterfeiting and taxation become focal points.

Collection and use of personal information of users should be strictly restricted

Committee Member Wang Hongyan: the clear provisions should be specified to require that all the platform operators and merchants must offer specific, clear and targeted description so that users can be fully informed and understand the purpose, scope, means, duration and power of the other party concerning their data. “I believe the earlier a plan for the protection of information security and personal information is proposed, the more convenient it becomes for enterprises to obey.”

Whether the individual e-commerce merchants should register with the administration for industry and commerce

Committee Member Bao Xinhe: first, if some legal disputes happen under no business registration, who should be accountable? The platform or the e-commerce merchants? Second, it will be better that there is a demarcation and that will be so vague if there is no registration. For example, considering the large volume of online sales for some self-producing subsidiary agricultural products, they may not belong to small-scale peasant economy. I suggest no matter how big or small the online store is, the related registration is necessary. As long as you do business, you should register and obey the administration.

The counterfeit production and sales should be severely punished

Committee Member LiYuefeng:I suggest that those bad conducts should be more severely punished and the cost of committing crimes or wrongdoing should be increased. “We should make those wrongdoing e-commerce merchants pay a high cost and make counterfeiting actsers take their consequences.”

The tax obligations should be identified

GongPuguang, Deputy Head of the Social Construction Committee under the National People’s Congress: I suggest that further efforts should be made on the e-commerce administration service and relevant specification clauses, in particular the taxation obligations and legal responsibilities about cross-border e-commerce should be identified. This has arisen as a very important issue in the cross-border e-commerce activities.