China's top market regulator has taken significant steps to enhance the oversight of e-commerce and online platforms by releasing draft guidelines intended to streamline how these entities charge merchants. Announced on Sunday, this move is part of a broader initiative by Beijing to foster fair competition and alleviate the operational pressures faced by smaller vendors, who play a crucial role in the platform economy.

The State Administration for Market Regulation (SAMR) has put forth a detailed 28-article draft guideline which aims to standardize the various fees that platforms impose on merchants. This includes a wide spectrum of charges such as commissions, membership fees, technical service charges, information fees, and marketing expenses.

Open for public feedback since Friday, the proposed rules emphasize the necessity for platforms to operate under the principles of fairness, legality, and good faith in their pricing strategies. The guidelines stipulate that any fees charged should be reflective of service agreements, commonly accepted business practices, and should align with the operating conditions of the merchants.

In a bid to support smaller and medium-sized merchants, the SAMR is encouraging platforms to implement flexible pricing models that are mutually beneficial. This includes the provision of discounts or even fee waivers as a demonstration of corporate social responsibility.

To further enhance accountability, the guidelines mandate that platforms establish dedicated compliance teams and internal mechanisms aimed at identifying and preventing unreasonable charges. This entails conducting proactive risk assessments and internal audits of their fee structures.

A notable aspect of the draft guidelines is the requirement for platforms to transparently disclose their fee standards, adhere to any promises concerning fee reductions, and recognize the rights of merchants to receive information and make informed choices regarding services.

Furthermore, the draft outlines prohibitions against eight distinct types of unfair practices. These include duplicate charging, imposing costs without delivering services, and shifting financial burdens that should be assumed by the platform itself.

The SAMR has also underscored the importance of platforms in engaging with merchants' concerns openly. It emphasizes the need for these platforms to comply with inspections and contribute to industry self-regulation efforts, all aimed at sustaining a fair competitive landscape in the market.