Shenzhen Enacts Rules Against Deceptive Auto-Renewal Practices by Online Platforms
Shenzhen's market regulator has issued new guidelines prohibiting online trading platforms from using automatic renewal services without explicit consumer consent. The rules aim to prevent "worry-free renewal" practices and protect consumers from hidden fees.
Shenzhen, China – Shenzhen's Market Supervision Administration has introduced new regulations targeting automatic renewal services offered by online trading platforms. The directives, effective immediately, mandate that platforms must obtain explicit consumer consent before activating any auto-renewal subscriptions, aiming to curb deceptive practices.
The guidelines strictly prohibit platforms from using methods such as pre-checked boxes, forced bundling, or hidden clauses to trick consumers into agreeing to automatic renewals. Services that automatically extend or renew subscriptions must ensure consumers have actively and clearly agreed to these terms. This move is a direct response to widespread consumer complaints regarding difficulties in canceling subscriptions and unclear billing notifications.
Furthermore, online platforms are required to provide prominent notifications to consumers at least five days prior to any automatic renewal charge. These alerts must be conspicuous, using methods like SMS, pop-up windows, or push notifications, giving consumers a clear opportunity to opt-out or confirm their subscription. The intention is to empower consumers with control over their recurring payments.
These regulations are designed to foster a more transparent and fair online marketplace in Shenzhen. By enforcing clear consent, prominent reminders, and easy cancellation processes, the administration seeks to protect consumer rights and enhance trust in digital commerce within the city.