Xinhua News Agency, Beijing, May 27th. Title: Top fines, suspension of business for rectification-what signal did the community group purchase "Shihui Group" have been severely fined?

　　Xinhua News Agency reporter Zhao Wenjun

　　On the 27th, the State Administration of Market Supervision imposed a maximum fine of RMB 1.5 million on Beijing Shihui Technology Co., Ltd. (the operating entity of the "Shihui Group") and ordered the "Shihui Group" platform to suspend business in Jiangsu for 3 days.

What is the signal behind this heavy fine and the suspension of business for rectification?

Constitute low-price dumping and price fraud

　　Judging from the investigation by the market supervision department, the illegal facts of the "Shihui Group" are very clear:

　　One is the “low-price dumping” behavior of selling goods at prices lower than the purchase cost through huge subsidies.

The "Shihui Group" sells products below the purchase cost and far below the operating cost on the basis of not accounting for expenditures such as product operating costs, storage costs, and distribution costs.

Continue to sell products below cost through price cuts, subsidies, etc., to squeeze out competitors, and the intention to seize the market is obvious.

Market supervision departments in many places have received reports, and many distributors and wholesalers have reported that the "Shihui Group" sells a large number of products below the cost, which seriously affects its survival and development.

　　The second is to use deceptive language, text, etc. to mark prices to induce others to trade with them.

For example, price promotion activities are carried out by means of spikes, direct reductions, etc., there are situations where the original price is falsified, and the price reduction is falsely claimed; the price promotion activities are carried out through price comparison, but the meaning of the crossed price is not accurately marked.

　　These actions have impacted the normal business activities of farmers’ markets, bazaars, supermarkets, shopping malls, and small vendors, disrupted normal production and operation and market price order, harmed the legitimate rights and interests of other operators, severely damaged the market environment, and violated The price law constitutes low-price dumping and price fraud.

　　In the course of the investigation, the market supervision department extracted the "Shihui Group" product pages related to price behavior, relevant financial data, and service agreements in accordance with the law, and asked the person in charge in accordance with the law, carefully sorted out the information, and analyzed the amount of subsidy. Perform iterative calculations.

At the same time, it also solicited opinions from relevant parties based on the specific circumstances of the case, and extended investigations into suppliers, "team leader shop" and other operators.

The investigation revealed that the facts of the "Shihui Group" improper price behavior are clear and the evidence is conclusive.

After a comprehensive self-examination, the rectification has not been implemented

　　The State Administration of Market Supervision resolutely implemented the important deployment of the Central Economic Work Conference on "preventing the disorderly expansion of capital" and promptly curbed the chaos of competition in the community group buying market.

In March of this year, five community group buying companies were fined separately for their improper price behaviors, and they were also ordered to "correct illegal behaviors."

Since then, relevant companies have submitted reports on rectification.

　　On April 13, the State Administration for Market Regulation, the Central Cyberspace Administration of China, and the State Administration of Taxation convened an administrative guidance meeting for 34 Internet companies, and put forward the specific requirements of "five strict prevention" and "five guarantees". The internal comprehensive self-examination and item-by-item rectification have released a strong regulatory signal, which is also a common requirement for all Internet companies.

At the meeting, it was specifically emphasized that specific clues discovered during the rectification period should continue to be investigated and handled in accordance with the law.

　　In late April, the market supervision department combined with daily price monitoring and related reporting clues and found that the "Shihui Group" had not fully implemented its rectification commitments, and there were still a large number of low-price dumping and price fraud in its Jiangsu area.

　　After in-depth investigation and evidence collection, it was confirmed that the relevant illegal acts of the "Ten Hui Group" were true.

In view of his "serious violations", "large social impact", "repeated investigations and repeated offenders," and other statutory serious circumstances, he was ordered to "suspend business in Jiangsu for 3 days for rectification" on the basis of imposing a fine according to law. On the other hand, considering the impact of the closure of business on supply chain businesses, the "Shihui Group" is ordered to complete the rectification as soon as possible within 3 days, which can also maximize the protection of the interests of supply chain businesses.

Repeated investigations and repeated violations will be severely punished

　　On May 27, the State Administration of Market Supervision held a reminder meeting for relevant companies. When the "Administrative Punishment Decision" was delivered to the "Ten Hui Group", the participating companies were asked to learn from each other and conduct self-examination and self-correction. Laws and regulations must not be ignored, and business must be compliant; business ethics must not be ignored, and strict self-discipline must not be ignored; regulatory requirements must not be ignored, and comprehensive rectification must be required;

　　The supervision of the Internet sector such as community group buying is inseparable from the joint supervision and co-governance of market supervision departments, industry authorities, industry associations and chambers of commerce, and the public.

According to reports, the clues to the illegal activities of the "Ten Hui Group" are reports from the trade associations and chambers of commerce.

　　In the next step, the State Administration of Market Supervision will continue to pay close attention to the competition in the community group buying market, keep the supervision and law enforcement, and resolutely maintain the order of market prices. Regardless of online or offline, regardless of scale, all market players are treated equally. At the same time, we solemnly remind other related companies that innovation is endless and there are red lines for business. We must respect the law, follow the supervision, consciously abide by the law and operate according to the regulations, and consciously maintain the business order. Don't take it for granted that you can buy a "talisman" after paying a fine. Such a "talisman" is unreliable.