Chinese language e-commerce platforms to finish refund-without-returns amid weak financial system, sources say

BEIJING/HONG KONG (Reuters) -Chinese language authorities have requested e-commerce platform operators to cease insisting on retailers refunding prospects with out requiring the return of products, to alleviate monetary strain on retailers, two folks aware of the matter mentioned.

The federal government met operators together with PDD Holdings and concluded the apply should finish by July, from which level solely retailers will be capable of provoke a refund, the folks mentioned, with out specifying dates.

The intention is to stop retailers’ state of affairs changing into tenuous throughout instances of financial slowdown, mentioned one of many folks, who declined to be recognized as a result of the data just isn’t public.

PDD and peer JD.com declined to remark. Alibaba Group and the State Administration for Market Regulation didn’t reply to requests for remark.

In July, lots of of individuals gathered at an workplace of PDD platform Temu in southern China to protest in opposition to its refund coverage. Authorities together with the market regulator and commerce ministry subsequently ordered PDD to revise the coverage.

This 12 months, authorities our bodies together with the market regulator and the Nationwide Growth and Reform Fee have elevated criticism of what they dub “involution-style” competitors. In March, through the annual parliamentary session, the phrase “complete rectification of ‘involution-style’ competitors” was integrated into the Authorities Work Report.

The refund-without-returns coverage was designed to learn each patrons and sellers for some forms of order. PDD started to develop the coverage in 2021, prompting rivals to observe swimsuit.

Retailers of products as assorted as garments and family home equipment have reported the coverage as detrimental to their backside line as they danger shedding each cash and items.

(Reporting by Sophie Yu and Anne Marie Roantree; Enhancing by Christopher Cushing)