China’s Ministry of Commerce has formally released the provisional
“Guide for Online Transactions”, the first of its kind in China.
The guide requires that online transaction service providers be a legal
entity operating in China. They must provide standard online transaction
services; build and perfect their user registration system; maintain
online transaction rules; and disclose all rules and information to
users. In addition, they should keep various records and data related to
the online trades conducted via their platforms.
The guide also says that each party involved in a transaction shall have
their real information known to the other party. This information
includes business license information, physical address, name, and
telephone number.
The guide further stipulates criteria to follow in conducting escrow
services. It suggests that the transaction parties keep a record of
their transactions, regardless of whether they choose to make the
payment online or offline, to aid future troubleshooting if problems arise.
