---
title: "Nanjing Issues Compliance Notice for Community Group Buying, Prohibiting Dumping Below Cost"
description: "Nanjing has taken the lead in issuing a compliance notice for community group buying, requiring platforms not to engage in low-price dumping below cost. Alibaba, Meituan, Didi, and others have signed the notice."
author: "创新零售社"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2020-12-15"
language: "en"
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# Nanjing Issues Compliance Notice for Community Group Buying, Prohibiting Dumping Below Cost

> Nanjing has taken the lead in issuing a compliance notice for community group buying, requiring platforms not to engage in low-price dumping below cost. Alibaba, Meituan, Didi, and others have signed the notice.

**Introduction: Nanjing has taken the lead in issuing a compliance notice for community group buying, requiring platforms not to engage in low-price dumping below cost. Alibaba, Meituan, Didi, and others have signed the notice.**
Now, the mention of "COVID-19" suddenly feels distant yet lingering, as if it's fading but still present.
However, it must be admitted that community group buying, a track that was nearly at a dead end, has been revitalized by the pandemic. But while it has been given a new lease on life, it has suddenly become apparent that this wave of dividends is too large—too large for the original players in the track to swallow, too large to avoid the adage "an innocent man may be blamed for possessing a treasure," and too large for countless people inside and outside the track to covet.
As a result, another war of burning money has been launched, pushing the intensity of internet subsidy wars to a new peak, following the group-buying war, food delivery war, and ride-hailing war.
**Whether it's the high-end internet industry or the ambitious real estate sector, they have all taken an interest in the FMCG business of picking up pennies while bending down.** After entering with massive capital, some "spend money like water," some "set no upper limit," and some "must win." They burn money to grab users, group leaders, and drivers.
The most direct manifestation is the grab for users, reflected in subsidies on goods. Eggs at 1.99 yuan, sugar oranges for 0.1 yuan, six packs of tissue for 0.01 yuan, and so on. Open any community group buying app and you'll see various "dirt-cheap" products, clearly forming a vicious price war.
On December 11, People's Daily published a commentary, pointing out that community group buying should "not just focus on the traffic of a few cabbages and fruits; the vast sea of technological innovation and infinite possibilities of the future are more exciting."
But what followed was a flood of interpretations. Whether this form of community group buying disrupts the overall market order or leads the retail industry to take a big step forward is not discussed here. We also won't speculate on the insinuations behind the People's Daily commentary.
**However, since community group buying has now risen to a national issue, it will inevitably face internal and external standardization and normalization.**
Just like spicy strips, a local snack that became a national internet-famous snack, clear regulations soon emerged. When the motorcycle ban was issued, electric scooters ran rampant and were modified arbitrarily, but what followed? All electric vehicles were forced to be registered and licensed. Community group buying is no exception.
**Recently, the Nanjing Market Supervision Administration took the lead in issuing the "Compliance Notice for E-commerce 'Vegetable Community Group Buying'" (hereinafter referred to as the "Notice"), providing compliance guidance to e-commerce platform operators engaged in "vegetable community group buying" activities.**
**First, the Notice clearly states that while strengthening internal management, platforms should also strengthen effective management of "group leaders," and emphasizes that "group leaders" (persons in charge) of "vegetable community group buying" should, as appropriate, register as market entities.**
Currently, "group leaders" in community group buying mainly cooperate with group buying merchants, earning commissions per order. When transaction issues arise or mediation is needed, the "group leader" plays a crucial role in representing residents in communication with the merchant and maximizing benefits. Therefore, effective management of "group leaders" directly affects the protection of consumer rights.
**In addition, the Notice also focuses on the keywords "orderly competition" and "honest operation."** It requires platform operators not to obtain transaction opportunities or competitive advantages through unfair competition methods, thereby harming the legitimate rights and interests of other operators or consumers. In particular, they must not engage in low-price dumping below cost to squeeze out competitors, monopolize the market, disrupt normal business order, or harm national interests or the legitimate interests of other operators.
At the same time, **platforms must not fabricate stockouts, panic buying, or discounts, nor deceive or mislead consumers with false or misleading information.** If gifts or services are attached, they should clearly indicate the variety, specifications, quantity, duration, and method; promotional measures should clearly indicate the scope, duration, and content. In particular, they should carefully evaluate and cautiously launch prepaid consumption models where payment is made first and consumption occurs in installments; and promptly handle complaints and reports related to business activities.
In addition, previously, imported cold-chain food or its packaging in many domestic regions tested positive for nucleic acid, causing great concern and worry among consumers. **The Notice also requires e-commerce platforms selling imported cold-chain food to obtain the "Nanjing Imported Cold-Chain Food Centralized Supervision Warehouse Release Certificate."**
Regarding the centralized supervision of imported cold-chain food that consumers have been concerned about, the Notice states that if consumers find imported cold-chain food sold without relevant import procedures, nucleic acid test certificates, or disinfection certificates, they can report it via 12315.
On the day the Notice was issued, the Municipal Market Supervision Administration also organized a symposium on compliance for e-commerce "vegetable community group buying." Responsible persons from Alibaba, Meituan, Didi, Suning, and other e-commerce community group buying platforms in Nanjing attended the symposium. The bureau's 12 business departments provided detailed interpretations on how to strengthen compliance for e-commerce "vegetable community group buying" based on relevant laws and regulations and actual conditions.
The participating e-commerce platforms signed the "Compliance Notice for E-commerce 'Vegetable Community Group Buying'" one after another, promising to actively cooperate with government regulatory departments, strictly abide by laws and regulations in future business activities, operate with integrity and in accordance with the law, engage in orderly and healthy competition, and jointly create a good market order and consumption environment for community group buying.
> **As for whether other regions will quickly follow suit, and what measures the leading players in the spotlight will take to face this sudden situation, welcome to leave comments for discussion.**
**Attachment: Full Text of the "Compliance Notice for E-commerce 'Vegetable Community Group Buying'"**
In accordance with the E-Commerce Law, Food Safety Law, Price Law, Anti-Unfair Competition Law, Anti-Monopoly Law, Advertising Law, Consumer Rights Protection Law, and relevant local regulations and rules, and based on the actual situation of our city, we hereby provide the following compliance guidance to e-commerce platform operators (hereinafter referred to as "platform operators") engaged in "vegetable community group buying" activities:
1. Encourage operational innovations that ensure the sufficient supply and quality safety of vegetables and other commodities needed for the daily life of our citizens, benefiting the people and facilitating convenience; achieve a win-win goal for producers, operators, consumers, and government regulatory departments.
2. Platform operators should proactively complete the filing of online food trading entities. If the commodities they operate require licenses according to law, they must obtain the licenses before operating. Those engaged in food group buying activities should go to the local district Market Supervision Administration to complete the filing of online food trading entities.
3. Platform operators should strictly implement the verification and update of the identity and license information of operators within the platform, and urge them to "display their license, certificate, and mark."
4. "Group leaders" (persons in charge) of "vegetable community group buying" should, as appropriate, register as market entities, and platform operators should strengthen effective management of "group leaders."
5. Platform operators must not obtain transaction opportunities or competitive advantages through unfair competition methods, thereby harming the legitimate rights and interests of other operators or consumers. In particular, they must not engage in low-price dumping below cost to squeeze out competitors, monopolize the market, disrupt normal business order, or harm national interests or the legitimate interests of other operators.
6. Platform operators should fulfill food safety obligations, set up specialized institutions or personnel responsible for food safety-related review and registration, credit evaluation, transaction information preservation, etc.; they should request invoices and certificates according to the requirements of different product categories and complete the product traceability system. Those selling imported cold-chain food should also obtain the "Nanjing Imported Cold-Chain Food Centralized Supervision Warehouse Release Certificate."
7. In their business activities, platforms and operators within the platform should accurately and clearly describe goods and services in accordance with the principle of honesty and credit. They must not fabricate stockouts, panic buying, or discounts, nor deceive or mislead consumers with false or misleading information. If gifts or services are attached, they should clearly indicate the variety, specifications, quantity, duration, and method; promotional measures should clearly indicate the scope, duration, and content.
8. Platforms and operators within the platform should also consciously accept supervision from relevant departments such as commerce, finance, environmental protection, and urban management. They should actively assume corporate social responsibility, effectively prevent operational risks, especially carefully evaluate and cautiously launch prepaid consumption models where payment is made first and consumption occurs in installments; and promptly handle complaints and reports related to business activities.
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