Last year, an investigative report about China’s illegal market of “empty package scalping” (空包刷单) was released by The Beijing News (link in Chinese) which we also covered. It explained how shop owners on Taobao and Tmall inflate their sales statistics though fake package deliveries by using “empty package” service websites and delivery services. So how does Alibaba keep merchants from falsifying sales data?

Alibaba just recorded total GMV of RMB 168.2 billion (more than $25.3 billion) on this year’s Singles’ Day. There was speculation that GMV numbers would be a bit more rational for this year Singles’ day, as Anti-Unfair Competition Law came into effect.

Just days ahead of Single’s day, the standing committee of the National People’s Congress passed changes to the Anti-Unfair Competition Law introducing new provisions that ban false or misleading advertising about a product’s features, functions or quality, forbid falsifying sales data, user comments and awards, and prohibit “organizing fake transactions” that amount to false or misleading commercial publicity.

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Eva Yoo

Eva Yoo is Shanghai-based tech writer. Reach her at evayoo@technode.com