In 2021, the MSA has initiated enforcement campaign against Anti-unfair Competition in key areas nationwide. The MSA has increased its surveillance over unfair competition in the cyberspace, especially on acts such as creating false transaction record to boost ranking and providing false promotional information through professionals, online articles, Internet celebrities, and online live streaming. Up until the first half of 2021, the general MSA and its local branches have handled 3128 cases concerning unfair competition and imposed fine amounting to RMB 206 million. The ten typical cases can be put in four categories.
First Category: fabrication of online heat and traffic during live streaming
One case falls within this category. Specifically, a store owner hired a specialist who specialized in arranging false traffic of viewers when the store owner went live on Douyin (Chinese version of TicTok.) The specialist was imposed a fine of RMB 23,000.
Second Category: false transaction by delivering B for an order for A
Two cases fall within this category. The store owner would pay someone to place order for A goods offered by the store. The store then delivered different goods B to the consumer in exchange for good appraisal and creasing false transaction record.
Third Category: employment of specialists to create false transaction record and increase of the ranking of online stores
Three cases fall within this category. The store owners would employ specialists to place orders for their goods and create false transaction records, to boost the ranking of their stores.
Fourth Category: mailing of empty parcels to create false logistics and transaction record
Four cases fall within this category. The store owners would purchase tracking numbers and creating empty parcels or parcels of goods with less value. The MSA is going to take more actions against unfair competition in this category.
Source:
http://www.samr.gov.cn/xw/zj/202107/t20210728_333120.html (Chinese)