The media, citing insiders, published information according to which the Chinese authorities have asked e-commerce platform operators to stop insisting that merchants refund customers without requiring the return of goods.
The journalists’ informants noted that the mentioned actions are aimed at relieving financial pressure on merchants.
According to information that was published by the media, citing insiders, the Chinese government held meetings with e-commerce platform operators, including PDD Holdings, and concluded that the specified practice should cease by July of the current year. It is expected that after the mentioned date, only merchants will be able to initiate a refund.
One of the insiders stated that in this case, the efforts of the Asian government are aimed at preventing the deterioration of the situation in which merchants find themselves during the economic slowdown. The informant of the journalists used the right of anonymity, noting that the mentioned actions of the Chinese authorities are carried out confidentially.
PDD and peer JD.com did not respond to a media request for comment on the specified information. Alibaba Group and the State Administration for Market Regulation also preferred a kind of tactic of silence in this case.
It is worth mentioning that last year hundreds of people gathered at an office of the PDD platform Temu in southern China to protest against its refund policy. Authorities, including the market regulator and the commerce ministry, ordered PDD to revise the policy.
In the current year, government bodies in the Asian country, including the market regulator and the National Development and Reform Commission, have intensified their criticism of what they characterize as involution-style competition. Last month, during the annual parliamentary session, such wording as comprehensive rectification of involvement-style competition was incorporated into the Government Work Report.
It is worth noting that the refund-without-returns policy was designed in the interests of both buyers and sellers for some types of orders. In 2021, PDD began to expand the policy. Competitors have followed this suit.
Merchants of a variety of goods, such as clothing and household appliances, have stated that the mentioned policy is detrimental to their bottom line. It was noted that in this case, they face the risk of losing both money and products.
As we have reported earlier, Shein and Temu to Increase US Prices.
