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Beijing Market Regulator Summons Taobao, JD-SW, PDD, Douyin, Xiaohongshu for Rectification, Says '6-18 10B Subsidy' Not Genuine RMB10B
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The Beijing Municipal Administration for Market Regulation summoned five e-commerce platforms - Taobao (Tmall), JD-SW (09618.HK), PDD Holdings Inc. (PDD.US), Douyin and Xiaohongshu - and reported the second batch of typical issues identified in the comprehensive rectification of "involution" competition. The main problems include false advertising in promotional campaigns, non-standard formulation and disclosure of promotion rules, and failure to disclose information on product operators. Rectification requirements were put forward to prevent and mitigate the risk of "involution" competition that may arise from concentrated online promotions during the "6-18" period, and to effectively safeguard consumers’ legitimate rights and interests as well as a fair and orderly online market environment. Among them, the Taobao (Tmall) platform has widely promoted its "6-18 10B Subsidy" campaign across media and application channels starting from May 2026. However, regulators learned from the platform that the 10B subsidy was not a RMB10 billion subsidy specifically invested for consumers during the "6-18" period. Instead, it was a long-term marketing campaign. The platform repeatedly refused to provide the actual subsidy amount invested during the "6-18" campaign and the respective contribution ratios between the platform and merchants. The platform also failed to prominently disclose the relevant rules for the "10B Subsidy" campaign, and certain products within the "10B Subsidy" channel did not disclose the qualification information of the actual sellers. PDD launched a "10B Subsidy" campaign but did not clearly specify in its rules the actual subsidy amount invested or the contribution ratios between the platform and merchants, and was unable to provide supporting documentation. In its promotion rules, it stated that "for any disputes related to products, Pinduoduo, as the platform, may provide necessary assistance within the scope of the law but shall not bear responsibility related to the products", thereby unilaterally exempting itself from statutory liabilities. JD-SW launched "10B Subsidy" and "10B Agricultural Subsidy" campaigns, but did not disclose the promotional period in the rules, failed to specify the actual subsidy amount invested or the contribution ratios between the platform and merchants, and was unable to provide supporting materials. The "10B Supermarket" campaign also did not disclose its promotional rules. Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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