China Bans the Imposition of “Lowest Price” Requirements by E-Commerce Platforms
China has announced comprehensive new regulations to rein in the aggressive pricing practices of e-commerce platforms. The rules aim to prohibit platforms from forcing merchants to offer the lowest prices and from applying different prices to consumers through algorithms without their consent.
The 29-article regulation, jointly issued by the National Development and Reform Commission, the State Administration for Market Regulation, and the Cyberspace Administration of China, introduces detailed compliance obligations for internet platforms. The regulation directly addresses long-standing concerns that dominant e-commerce platforms have developed practices detrimental to merchants and consumers by using their scale, data, and algorithms.
E-Commerce Platforms Are Prohibited From Forcing Merchants Into Predatory Discounts
Under the new rules, platforms are explicitly prohibited from imposing “lowest price” agreements on merchants or forcing them into predatory discounting. E-commerce platforms are also prevented from using methods such as traffic throttling, lowering search rankings, or imposing algorithmic penalties to compel merchants into exclusive pricing arrangements or to force them to match prices offered elsewhere. Authorities state that these measures aim to restore merchants’ autonomy over pricing and to promote fair competition within the platform economy.
Restrictions Are Introduced on Algorithmic Price Discrimination
The regulation also tightens oversight of algorithm-based pricing practices. E-commece platforms are prohibited from applying different prices or pricing standards for the same goods or services, without user consent, based on data such as consumers’ willingness or ability to pay, spending habits, or preferences.
This provision targets opaque or unfair dynamic pricing practices that have recently drawn increasing criticism from policymakers and consumers. Authorities aim, through consent and transparency requirements, to prevent data-driven pricing from undermining consumer trust.
Regulations Aim to Protect Consumers’ Right to Information and Choice
As part of efforts to combat “false price traps,” the rules mandate clearer price labeling. E-commerce platforms will be required to clearly distinguish between estimated prices and final settlement prices, and they will be prohibited from displaying lower prices on homepages or prominent areas that differ from those shown on product detail pages. Advertising transparency is also being strengthened.
Goods or services appearing in paid search results must be clearly labeled as advertisements. For services such as password-free payments, bundled sales, express checkout, or automatic renewals, platforms will be required to obtain explicit consumer consent and provide easily visible cancellation options. These measures aim to protect consumers’ rights to information and choice, particularly in areas where convenience-oriented services have led to unintended charges or confusion.
“Lowest Price Guarantees Undermine Merchants’ Operational Autonomy”
Li Chengdong, founder and chief analyst of Beijing-based e-commerce consultancy Dolphin, said that large platforms have long used their scale advantages to demand that brands guarantee the lowest prices on their platforms, undermining merchants’ operational autonomy. According to Li, this situation has increased operational costs by pushing brands to produce product variants with minor differences for different platforms.
The new regulation follows a series of steps taken this year against aggressive pricing strategies in the platform economy. Last week, the market regulator warned that e-commerce platforms imposing the lowest prices across the internet could face antitrust penalties. This warning came after draft guidelines published in November that addressed the hidden risks of algorithm-based price manipulation.
The New Regulation Will Take Effect on April 10, 2026
The rules are scheduled to come into effect on April 10, 2026. Authorities announced that major platform operators will be required to carry out self-inspection processes to ensure compliance with the new standards. Officials describe the regulation as part of a broader effort to support the healthy and sustainable development of the platform economy while encouraging innovation. These measures, which aim to limit price unfairness and increase transparency, are intended to strike a balance between growth and the protection of consumers and merchants.