E-Commerce: New Law Released in China to Crack Down Telecom and Online Fraud

E-Commerce: New Law Released in China to Crack Down Telecom and Online Fraud

1. E-Commerce: New Law Released in China to Crack Down Telecom and Online Fraud

The Anti-Telecom and Online Fraud Law of the People’s Republic of China (the “Law”) has been promulgated and shall become effective from December 1, 2022. The Law sends a signal of China’s strict control over the telecom and online fraud,1 imposing heavier punishment on scammers who cheat people to remit money by means of phones, text messages, or the internet. In addition to the heavier punishment on scammers, we would like to draw your attention of the following highlights in the Law.

(1) Overseas organizations/individuals are within the scope of the Law 

Telecom and online fraud refers to the behavior of fraudulently obtaining any public or private property in a remote or non-contact manner by means of telecom and network technologies for the purpose of illegal possession.2

The Law shall apply to telecom and online fraud activities carried out within the territory of China or those carried out by citizens of China overseas. The Law also apply to overseas organizations and individuals who provide others with product, service, or other assistances for carrying out telecom and online fraud activities within the territory of China.3

(2) Strict Control on Bank Accounts 

(3) Strict Control on Phone Card 

(http://www.npc.gov.cn/npc/c30834/202209/599ff6e51f8341c79d3908ca35258043.shtml)

2. E-health Law: Measures for the Supervision and Administration of Online Drug Sales Clarified

The State Administration for Market Regulation has issued the Measures for the Supervision and Administration of Online Drug Sales (the « Measures »), with effect on December 1, 2022. The special obligations for online drug sellers and the corresponding legal liability are as follows:

(https://gkml.samr.gov.cn/nsjg/fgs/202209/t20220901_349742.html)

Should you need to know more details, please reach us at asialians@asiallians.com.

1 Article 2 of the Law
2 Article 2 of the Law
3 Article 3 of the Law
4 Article 15 of the Law
5 Article 40 of the Law
6 Article 16 of the Law. However, detailed legislation will be released soon to define how many bank accounts a company/an individual can open.
7 Article 31 of the Law
8 Article 31 and 44 of the Law
9 Article 15 of the Law
10 Article 40 of the Law
11 Article 10 of the Law. However, detailed legislation will be released soon to define how many phone cards a company/an individual can open.
12 Article 31 of the Law
13 Article 31 and 44 of the Law
14 Article 9 of the Measures
15 Article 34 of the Measures
16 Article 13 of the Measures
17 Article 36 of the Measures
18 Article 14 and 15 of the Measures
19 Article 37 of the Measures and Article 126 of the Drug Administration Law