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Chinese authorities have summoned representatives of major e-commerce platforms, JD.com, Pinduoduo, and three others over allegations of misleading advertising ahead of a major online shopping event.
The Beijing Municipal Administration for Market Regulation announced on Thursday that it held talks with five leading platforms as part of efforts to address unfair business practices and excessive competition in the country’s online marketplace.
According to AFP, the Beijing watchdog said the companies were questioned over issues such as false advertising, unclear promotional rules, and failure to properly disclose merchant information.
Some platforms launched “10 billion yuan subsidy” campaigns for the ongoing “6.18” online shopping festival without clearly stating the actual subsidy amounts or the duration of the promotions.
The watchdog said it has issued “rectification requirements” targeted at reducing risks and ensuring greater transparency during the shopping event.
The move comes during a wider crackdown by Chinese regulators on what is known as “involution-style” competition, a term used to describe intense business rivalry that often results in aggressive pricing and promotional tactics with limited long-term benefits.
Chinese authorities have recently increased oversight of sectors including e-commerce, food delivery, and electric vehicles as part of efforts to promote fair competition and protect consumers.
The affected companies have not publicly commented on the matter.
