New online shopping regulations have been released, allowing consumers to cancel orders without reason during a "calm-down" period.

by chomeyudream on 2011-04-16 19:07:41

Buying goods online in a fit of enthusiasm and then finding it extremely difficult to return them may soon be a thing of the past. At the 2011 Third-Party E-commerce Trading Platform Summit Forum held yesterday, the Ministry of Commerce (MOC) released the 'Third-Party E-commerce Trading Platform Service Standards,' which encourages online shopping enterprises to establish a cooling-off period system that allows consumers to cancel orders without reason during this period, similar to taking a "regret pill."

**New Regulations**

"Orders can be canceled without reason within the 'cooling-off period'"

The standards clearly stipulate: "Platform operators are encouraged to set up a cooling-off period system, allowing consumers to cancel their orders without reason during this period." Li Jinqi, Director of the Information Department of the MOC, stated that such requirements help reduce trading disputes and increase consumer satisfaction. However, this system does not apply to special commodities such as medicines, fresh produce, cosmetics, etc. The standards also specify: "Network third-party trading platforms and platform operators are encouraged to provide 'seller deposit' services to consumers. The deposit is used for compensating transaction losses of consumers. The amount and usage method of the deposit should be filed with and publicized by the local industrial and commercial administrative department beforehand."

**Investigation**

High cost of regretting impulsive consumption

"Sometimes it's because it's cheap, sometimes it's because the pictures look tempting." Ms. Wang, a typical online shopping enthusiast, often places orders on impulse and regrets it afterward, "Once I spent 30 yuan on a piece of clothing. After receiving it, I regretted it. Although the seller agreed to the return, I had to bear the round-trip shipping costs, which amounted to another 20 yuan, making it very uneconomical." She said that if she could calmly consider before buying, she wouldn't have made such decisions that result in both economic and energy losses.

According to my understanding, impulsive consumption is not uncommon in online shopping. Consumers place orders immediately upon seeing a bargain but later find they don't like or need the item. Online sellers, eager to earn good reviews for fast shipping, confirm orders quickly and ship them right away. Once the goods are sent out, the order cannot be canceled. Unless there is a quality issue, online sellers generally do not agree to returns or refunds.

**Voices from all sides**

**Ministry of Commerce:** Standards are non-mandatory requirements

A relevant official from the Ministry of Commerce explained that currently these standards are recommended and not mandatory. Moreover, the "cooling-off period" system does not apply to industries such as cold-fresh goods, food, cosmetics, and pharmaceuticals. Relevant platform operators can determine whether to set a cooling-off period based on specific circumstances. In the long run, the establishment of a cooling-off period system helps reduce transaction disputes, establish the image of platform operators, and ultimately promote the healthy development of China's e-commerce.

**Merchants:** Standards have a positive effect on the industry

In addition, a relevant person in charge of Taobao told reporters yesterday that these standards have a positive effect on the industry. For Taobao, since 2010, it has launched a consumer protection plan and introduced services such as "advance compensation" and "seven-day return/exchange," which align with the purpose of establishing a "cooling-off period."

**Experts:** "Cooling-off period" should be moved to before placing an order

E-commerce expert Zhao Tingchao indicated that the improvement of this system should go through three stages: first, advocating and encouraging companies to establish this system; second, certifying companies that perform well in implementation; third, after the certification system matures, truly enforcing mandatory certification in certain e-commerce fields. Zhao Tingchao believes that the "cooling-off period" should not be set after placing an order, because once the consumer places an order, it means that a transaction behavior has already been formed, which has legal significance, and merchants have already started the processes of picking, packing, and shipping goods. Zhao Tingchao stated that websites can use various methods to repeatedly remind consumers before placing an order whether they really want to purchase.

Morning Post reporter Xiao Dan, Liu Yinghua, Zhang Liming

> Related reports: Banks lowering online banking transaction limits accused of overcharging fees. Several banks' online banking payment limits have shrunk, suspected of pressuring third parties. The 'Third-Party E-commerce Trading Platform Service Standards' have been issued. The "2011 Third-Party E-commerce Trading Platform Summit Forum" was held in Beijing.