Recently, the State Administration for Market Regulation ("SAMR") issued the Provisions on Prohibition of Unfair Competition on the Internet (Draft for Public Comment) (the "Draft for Comment") for public comments by September 15, 2021.

The Draft for Comment states that business operators shall not adopt nine types of methods such as "engaging in fake transactions or organizing false transactions" to make false or misleading advertising about themselves or their products' sales status, transaction information, operating data, and user evaluations, thereby deceiving and misleading consumers or the relevant public. The Draft for Comment underlines that, business operators shall not use data, algorithms and other technical means to commit traffic hijacking, interference, malicious incompatibility and other acts by influencing user choices or other ways, hindering or damaging the normal operation of network products or services legally provided by other business operators. The Draft for Comment also indicates that the market regulatory authorities may appoint expert observers to assist in the investigation of new-type cases and tough cases.

(Source: State Administration for Market Regulation)