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New Rules for Taobao Sellers Compliance with CAC rules

#Build Your Network#Finance Regulators#China e-Commerce#Payment Systems#Entrepreneur#Market Outlook#Competition Law / Anti-Trust#Business Greetings#Capital Markets

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China’s internet authority (the CAC) has started a new 2-months campaign to weed out social media manipulation, including buying bot fans and likes, discrediting competitors online, and hiring ghostwriters to influence online discussions.

Fabricated sales and endorsements of products on short-video platforms, live-streaming and e-commerce sites. You might be surprised to know that 30-50% of all purchased items on the Chinese internet are returned, but the ‘sales’ and ‘GMV’ are recorded. Many of these returned purchases are done by bots to show pretty sales results by bloggers, brands, and e-commerce platforms.




The CAC will also look to stop activities by “purchased followers” or engagements on social media, video platforms, and app stores, such as paid reviews on products, for instance. Yes, most brands, celebrities, KOLs out there have fake fans and fake interactions. On platforms such as Weibo industry consensus is about 30-40% of all fans are bots.

The CAC will also go after so-called “dark public relations” that harm or destroy competitors through online attacks. Your competitors could place a large order to deplete your stock on, say, Tmall, and then return them all with your paid return shipment, and also write nasty reviews on the products. And this isn’t even the worst-case scenario.

It will focus on 水军 = internet water army or hired bots that are paid to endorse a product or discredit a person.

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