China to Revise E-Commerce Law, Increase Penalties for Platforms

China's State Administration for Market Regulation (SAMR) announced plans to revise the country's E-Commerce Law during the "15th Five-Year Plan" period, spanning from 2026 to 2030. These changes are intended to strengthen oversight of e-commerce platforms and foster healthy market development.

A key reform involves updating the legal framework to allow for more stringent penalties against e-commerce platforms. The SAMR plans to introduce new types of sanctions, such as proportional fines based on violations and temporary suspension of business operations. This aims to hold platforms more accountable for responsibilities including merchant vetting, product information control, and consumer safety.

The legislation will also be expanded to encompass emerging e-commerce models and a wider range of participants. Future amendments will seek to include various e-commerce operators, new forms of platform-based employment, and associated entities. Concurrently, the SAMR will continue to enhance regulatory efforts through targeted actions against sectors like live-streaming e-commerce and second-hand trading platforms.

Furthermore, SAMR is accelerating the development of a national online market supervision platform and promoting cross-agency data interoperability. The objective is to improve regulatory effectiveness and intergovernmental collaboration in the digital commerce landscape. These initiatives are designed to encourage both innovation and fair competition within China's e-commerce market.