The First-Ever E-Commerce Law: How Will the Law Impact Individuals and Businesses?

• Author: Tan Yanfei
• Pages: 428-437

428 TSINGHUA CHINA LAW REVIEW [Vol. 11:427

THE FIRST-EVER E-COMMERCE LAW:

HOW WILL THE LAW IMPACT INDIVIDUALS

AND BUSINESSES?

TAN Yanfei

I. INTRODUCTION

After four rounds of debates, on August 31, 2018, the leading

legislators of China passed E-Commerce Law of the People’s Republic

of China (hereinafter referred to as “ECL”). The law has become

effective on January 1, 2019. ECL aimed at improving regulation of

the flourishing online market, specifying various regulations

concerning operators, contracts, dispute settlement and liabilities

involved in e-commerce as well as the market development.1 On the

whole, ECL imposes relatively heavy obligations and responsibilities

on e-commerce businesses, especially on platforms, and provides

protection for the relatively disadvantaged e-commerce consumers.

This note will introduce some key provisions of ECL, including those

affecting the interests of Chinese individual daigous, those providing

various protection for Chinese consumers, and those ruling the

obligations of the e-commerce platforms.

II. CRACKDOWN ON INDIVIDUAL DAIGOUS

Under ECL, the legal definition of an “e-commerce operator”

covers most online sellers2, including e-commerce platforms such as

Taobao and JD.com, any vendor on any of these platforms, as well as

individual sellers. In particular, the law would have a great impact on

individual purchasing agent, or “daigou (代购)”, who purchase and

deliver in person luxury goods and other commodities sold at a

cheaper price overseas for domestic clients. From 2014 to 2017, the

daigou merchants group grew from an estimated 7.52 million to 20.18

1 Said Yin Zhongqing, one of the lawmakers, at a press conference held by the General Office of the

NPC Sta nding Committe on August 31, 201 8. See China Focus: Ch ina Adopts E-Commerce Law to

Improve Market Regulation , XINHUA NET (Aug. 31, 20 18), http://www.xinhuanet.c om/english/2018-

08/31/c_137434452.htm.

2 Dianzi Shangwu Fa (电子商务法) [E-Commerce Law] (promulgated by the Standing Comm. Nat’l

People’s Cong., Aug. 31, 2018, effective on Ja n. 1, 2019) art. 9 (Chinalawinfo).