Chinese regulator mulls punishment for illegal pricing activities

BEIJING, July 2 (Xinhua) -- China's top market watchdog on Friday released draft rules to punish illegal pricing activities, detailing fines for malpractices that disrupt market order and the practice among e-commerce platforms of setting different prices based on customers' purchasing preferences.

For the purpose of excluding competitors or monopolizing the market, the practices of dumping products at rates lower than cost price and disrupting normal production and operation order could incur fines less than 5 times the illegal income, according to the State Administration for Market Regulation.

If no illegal income was involved, fines of 1 percent to 10 percent of the sales volume during the period of the illegal act could be imposed.

Concerning pricing malpractices in the new business models, the practices among e-commerce platforms to set different prices based on consumers' purchasing behaviors could levy fines of 0.1 percent to 0.5 percent of businesses' annual sales or even business suspensions, the draft noted.

Other practices subject to penalties include price manipulation and driving up prices through collusion.

The rules are aimed at maintaining normal pricing order and protecting the legitimate interests of consumers and business operators, the regulator said.