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November 6, 2017 08:00 pm

China is Finally Going After Click Farms and Fake Online Sales

China enacted sweeping changes to a business competition law to address fraud in the e-commerce industry, which is plagued by malfeasance ranging from fake positive reviews to merchants goosing sales numbers. From a report: The National People's Congress adopted revisions Saturday to the Anti-Unfair Competition Law intended to address online retailers, the official Xinhua News Agency reported. The changes take effect Jan. 1 but were announced days before Alibaba Group Holding Ltd.'s Nov. 11 Singles' Day bargain extravaganza, which dwarfs Black Friday in the U.S. in terms of revenue. The Chinese law initially took effect in 1993 as a way to protect consumers and businesses from unfair market practices. At that time, none of China's biggest online companies -- including Alibaba, Tencent Holdings Ltd., Baidu Inc. and JD.com Inc. -- even existed. As e-commerce developed and prospered, attendant problems grew with it. These latest revisions stipulate that operators shouldn't deceive consumers by faking sales or employing "click farms" to rack up positive product reviews -- increasingly common practices that have drawn the ire of buyers. And the rules encompass the entire breadth of internet commerce, from online goods and movie ticketing to food delivery.

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