Rules for Enforcement Action against Non-Compliance of Transaction

Rules for Enforcement Action against Non-Compliance of Transaction

2015-10-23 05:26

Version No.: 20190118 Date of Issuance: 20190225

I. Penalties for non-compliance in online transactions

1、

Failure to ship goods after an order is placed. After an order becomes effective, if the Seller refuses t o perform its obligation of shipment, or if, at the time Alibaba.com accepts the dispute in relation ther eto, the Seller still fails to ship the goods after the expiration of the agreed shipment period :

a. b. c.

2、

Delay of shipment. If, at the time Alibaba.com accepts the handling of the dispute, the Seller has faile d to ship the goods within the period as agreed in the transaction contract or as agreed by the Buyer and the Seller:

a. b.

3、

Goods delivered not corresponding to requirements as agreed. If the goods actually delivered by the S eller do not meet the agreed requirement in the transaction contract (including but not limited to, the material/component content/category/safety standard of the goods not corresponding to the agreed requirements, the loss of the major functions or unavailability for use of the goods, quality not up to s tandard, short shipment):

a. b.

4、

Breach of undertakings. 3 points will be deducted for each occurrence if the Seller fails to comply wit h any of the following undertakings:

a. b.

   ll

s on Ali

 b

 c. d.

No point will be deducted if the Seller pays liquidated damages to the Buyer as agreed between t he Buyer and the Seller or pursuant to other rules of Alibaba.com, or if the Buyer and the Seller reach a settlement agreement.

5、

Failure to fulfill any settlement agreement or any decision made by Alibaba.com in dispute mediation. If the Seller refuses or fails to fulfill the settlement agreement upon negotiations between the Buyer a nd the Seller or the decision made by Alibaba.com in dispute mediation, including but not limited to re fund, replacement of goods, supplement of goods, reshipment of goods, repair, payment of liquidated

damages or compensations, then 3 points will be deducted for each occurrence.

Notes: The Seller shall be deemed to have performed the obligation of refund either in the proactiv e manner (i.e. after the Buyer and the Seller reach an agreement through negotiations automatic d eduction from the balance of the Seller’s account provided that the balance is sufficient) or in the passive manner (i.e. after the Buyer and the Seller reach an agreement through negotiations, if the balance of the Seller’s account is not sufficient, payment by Alibaba.com on behalf of the Seller an d deduction of the corresponding amount from the Seller’s account within 15 days after payment b y Alibaba.com on behalf of the Seller).

6、

Sale of counterfeit goods. If the Seller sells goods that infringe on other parties’ intellectual property r ights, and Alibaba.com determines that the Seller shall be liable therefor, then will be punished accord ing to the Enforcement Actions for Intellectual Property Rights Infringements Claims on Alibaba.co m.

7、

Malicious collusion. If the Seller and the Buyer, by taking advantage of Alibaba.com, collude in commi tting any act that is prohibited by laws or other rules of Alibaba.com, or in hopes of seeking improper benefits, 12 points will be deducted against the Seller for each occurrence. If the Buyer is involved in t he act above, Alibaba.com will determine the gravity thereof and impose penalties on the Buyer accor dingly, including but not limited to closure of the Buyer’s account.

8、

Provision of false evidence. If, during the course of dispute mediation process between the Buyer and

the Seller, any fabricated, false or forged evidence is provided or other party’s evidence is fraudulentl y used, 12 points will be deducted against the Seller for each occurrence. If the Buyer is involved in th e act above, Alibaba.com will determine the gravity thereof and impose penalties on the Buyer accordi ngly, including but not limited to closure of the Buyer’s account.

If the Seller commits any of the above non-

compliance, which is determined by Alibaba.com to be serious and detrimental to the proper operatio n of the platform, Alibaba.com shall have the right to directly close the Seller’s account and take othe r measures.

 

    II. Penalties for fraud in offline transactions

1、If the Seller fails to ship goods after receipt of payment:

a.

b.

2、 If the Buyer fails to make payment after receipt of goods, Alibaba.com will determine the gravity ther eof and impose penalties on the Buyer accordingly, including but not limited to closure of the Buyer’s ac count.

III. If the Seller violates other transaction rules or commits any dishonest business conduct, Alibaba.co m shall have the right to take measures against the Seller’s account according to the harm and actual seriousness thereof, including but not limited to removal of trade assurance marks from the Seller’s

products and store, freezing or canceling the trade assurance amount, restricting the withdrawal, and termination of trade assurance service, etc.

IV. Alibaba.com will monitor and review the Sellers’ overall non-

compliance in transactions and has the right to take corresponding penalty measures against those w ho seriously disrupt the transaction order on Alibaba.com.

IV. Alibaba.com will monitor and review the Sellers’ overall non-

compliance in transactions and has the right to take corresponding penalty measures against those w ho seriously disrupt the transaction order on Alibaba.com.

V. In no event will penalty imposed by Alibaba.com hereunder discharge the user from any liability for compensation under laws and regulations, other rules and agreements of Alibaba.com, transaction co ntracts or other agreements between the Buyer and the Seller.

VI. Alibaba.com has the right to amend these Rules in light of the changes in laws and regulations, bu siness environment or other reasons. The amended Rules will come into force upon expiration of the publicity period.

VII. These Rules are an integral part of the Rules of Alibaba.com. In case of any inconsistency betwee n these Rules and the Rules of Alibaba.com, these Rules shall prevail. For any matters not covered her ein, the Rules of Alibaba.com shall apply. If there is any inconsistency, discrepancy or conflict betwee n the Chinese version and other language versions of these Rules, the Chinese version shall prevail.

Enforcement actions

Penalty points cumulatively in curred

6 points 12 points

24 points 36 points

Enforcement actions

Issuance of severe warning

Blocking of search results and mini-site for 7 days

Blocking of search results and mini-site for 14 days

Blocking of search results and

Remarks

Email notification

                         Email notification and automat ic enforcement of penalty by s ystem

    mini-site for 21 days

48 points Termination of membership Not applicable

          Note:

a) In case of extremely serious non-

compliance, Alibaba.com has the right to immediately terminate the agreement unilaterally a nd close the account without refunding service fees for the remaining period, and also has th e right to announce the same on Alibaba.com and/or other media, impose associated penalti es and/or permanent refusal of cooperation and other enforcement actions.

b) Where the cumulative penalty points of a user reach 24 points or above, Alibaba.com has the right to refuse or restrict such user’s participation in various promotions and marketi ng activities on Alibaba.com or to use the products/services.

c) Points are cumulatively calculated on a yearly basis, which means that all penalty points

are on record for a 365-

day period, except where enforcement action of closing the account has been imposed.

 In the event of any inconsistency between the English and Chinese versions of these Rules, the Chinese version shall prevail.

1 point will be deducted for each occurrence if the Seller and the Buyer have settled the dispute throu gh negotiations and Alibaba.com has not intervened in the dispute;

2 points will be deducted for each occurrence if Alibaba.com determines that the Seller has breached its shipment obligation but provided an effective solution; or

4 points will be deducted for each occurrence if Alibaba.com determines that the Seller has breached its shipment obligation and failed to provide an effective solution.

1 point will be deducted for each occurrence if Alibaba.com determines that the Seller has breached it s shipment obligation but provided an effective solution; or

3 points will be deducted for each occurrence if Alibaba.com determines that the Seller has breached its shipment obligation and failed to provide an effective solution.

1 point will be deducted for each occurrence if Alibaba.com determines that the Seller was in breach of the transaction contract but provided an effective solution; or

3 points will be deducted for each occurrence if Alibaba.com determines that the Seller was in breach of the transaction contract and has failed to provide an effective solution.

to give the Buyer discounts, gifts, services and other benefits than the subject matter of the transacti on as agreed;

to provide the Buyer with after-

sales services such as return and replacement of goods, spare parts, repair and quality warranty as a greed;

to perform service commitments in accordance with marketing rules or service agreements; and other undertakings (unless otherwise provided).

6 points will be deducted for each occurrence if Alibaba.com determines that the Seller has committe d fraud but provided an effective solution; or

48 points will be deducted for each occurrence if Alibaba.com determines that the Seller has committ ed fraud and failed to provide an effective solution

Enforcement Actions for Publishing Invalid Product Information

 2017-06-08 15:50

Version No.: July 27, 2017

(“Rules”)

 Alibaba.com is committed to actively maintaining order on the Alibaba.com Website and improving the u ser experience. Pursuant to Alibaba.com International Platform’s General Provisions , these Rules are hereby formulated to prohibit any publication of Invalid Product Information (as defined below) on Alibab a.com’s International Website (URL: http:// www.alibaba.com ) and/or any mobile apps ("Alibaba.com Website"). These Rules shall apply to all sellers that create, publish and promote content and/or informa tion on the Alibaba.com Website (“Sellers”).

Article 1 – Invalid Product Information

1. “Invalid Product Information” shall refer to the product information published by any Seller on the Ali baba.com Website that involves any of the following violations: (a) product information that violates t he applicable rules of the Alibaba.com Website; (b) store information that violates the applicable rule s of the Alibaba.com Website; (c) product category misplacement; (d) duplicate product postings; (e) falsified pricing, stock keeping units (“SKU”) and/or minimum order quantity (“MOQ”) (“Falsified Inf ormation”); and/or (f) any other content which is deemed to be not in the interest of the Alibaba.com

Website and/or its users.

Article 2 – Classification of Violations A. Product category misplacement

Effective Date: Aug 3, 2020

  1.

2.

Product category misplacement refers to instances where the category selected by a Seller on the Ali baba.com Website when posting a product thereon does not match the actual category of the produ ct.

Product shall be placed under the applicable subcategory that is most relevant and suitable to the pr oduct. The product shall not be placed under the category of "Others" if there is an available catego ry that is a better match. Categories recommended by the system are for reference only. Sellers shal l select appropriate categories with caution based on the actual nature of the products.

3. For categories that require special control (as set out below) (“Special Control Categories”), the rele vant product information shall be published under the specified category that is applicable thereto. If a S

  https://rulechannel.alibaba.com/icbu?type=detail&ruleId=5845&cId=1294#/rule/detail?ruleId=5845&cId=1294 7/03/2022 23:27 Pagina 1 van 7

 eller does not select the specific category according to these Rules, it will be deemed as an intentional b reach. Alibaba.com shall have the right to take any enforcement action against the Seller in accordance with the Enforcement Actions for Displaying Prohibited and Controlled Items, these Rules and any other r ules and regulations on the Alibaba.com Website.

4. For any product that is discovered to be subject to product category misplacement, Alibaba.com shall have the right to remove and/or delete the offending product from the Alibaba.com Website, and shall d educt one (1) point from the Seller’s account for such violation. In the event the number of the offending

products have exceeded an amount prescribed by Alibaba.com, Alibaba.com shall have the right to take more serious measures against the Seller including to adjust the search rankings of all products of the S eller on the Alibaba.com Website (or any part thereof) regardless of whether all such products are subjec t to category misplacement and to deduct more points (subject to the seriousness of the violation by the Seller as may be determined by Alibaba.com) from the Seller’s account. For more severe violations, Alib aba.com shall reserve the right to (a) block all the Seller’s products from the Alibaba.com Website; and/ or (b) suspend or terminate its account on the Alibaba.com Website.

5. Examples of the Special Control Categories shall include but are not limited to the following:

(a) Information relating to over-the-

counter medicines shall be published under the “Health & Medical > Medicine” category.

(b) Information relating to fireworks, firecrackers and other similar products shall be published under the “Gifts & Crafts > Festive & Party Supplies > Fireworks & Firecrackers” category.

(c) Information relating to police supplies and other similar products shall be published under the “Securi ty & Protection > Police & Military Supplies” category.

(d) Information relating to crossbows and other similar products shall be published under the “Sports & Entertainment > Outdoor Sports > Hunting > Bow & Arrow” category.

(e) Information relating to audio-

visual products shall be published under the “Consumer Electronics > Electronic Publications” cate gory.

For other categories that are subject to special control, please see the Enforcement Actions for Di splaying Prohibited and Controlled Items.

B. Duplicate product postings

1. Duplicate product postings refers to circumstances where any Seller publishes two (2) or more produ cts with product information that is identical or contains similar information between each other or s hares similar attributes and/or descriptions between each other (including but not limited to the bran d, specification, model, materials, image, etc.). Any products that are of the same nature but come wi th different specifications and models shall be published under the same product but with different S KU attributes.

2.

(a)

If any products posted by any Seller are reasonably deemed to be duplicate product postings by Alib aba.com, Alibaba.com shall have the right to take the following enforcement actions:

   Violation

Publishes offending products on the Alibaba.com Website

Enforcement Action

The offending product will be removed

       (b)

  Failure to rectify any product posting that is subject to recti fication* within the 14 day rect ification period

   The offending product will be completely deleted from the A libaba.com Website

Remarks:

https://rulechannel.alibaba.com/icbu?type=detail&ruleId=5845&cId=1294#/rule/detail?ruleId=5845&cId=1294 7/03/2022 23:27 Pagina 2 van 7

 (i) (ii)

3.

Product posting that is subject to rectification shall refer to any offending product of which Alibaba .com has requested the Seller to rectify the violation via the Product Optimization Tools;

Only one line of product information will be displayed in the search results, (i.e. the product with th e highest buyer preference and the best historical performance when the buyer searches for simila r products via certain keywords). Other duplicate product information will not be displayed in the s earch results.

In the event where the number of products that are discovered to be subject to duplicate product p ostings have exceeded an amount prescribed by Alibaba.com, Alibaba.com shall have the right to a djust the search rankings of all products of the Seller on the Alibaba.com Website (or any part ther eof) regardless of whether all such products are subject to duplicate product postings and to dedu ct points (subject to the seriousness of the violation by the Seller as may be determined by Alibaba .com) from the Seller’s account. For more severe violations , Alibaba.com shall reserve the right to (a) block all the Seller’s products from the Alibaba.com Website; and/or (b) suspend or terminate it s account on the Alibaba.com Website.

C. Falsified Information

1. Falsified pricing refers to the conduct of any Seller which involves the following events: (a) there is a significant difference between the listed price range of a product posted by a Seller and the market price of the similar product in the same industry; (b) whilst the price of the product posted by the Sel ler is low, the relevant shipping costs is significantly higher than average; and/or (c) the actual shippi ng cost collected by the Seller is higher than the shipping cost shown on the Alibaba.com Website.

2. Falsified MOQ refers to the conduct of any Seller which involves falsifying the MOQ.

3. Falsified SKU refers to the conduct of any Seller which involves any abuse of SKU settings on the Ali baba.com Website (such as setting the specifications, quantity, unit, postage, and other information in a n unconventional way, or changing key product elements through the SKU settings) for publishing a high er-priced or lower-priced SKU that deviates from the normal price.

4. If Alibaba.com has any reasonable ground to believe that any Seller is involved in any of the aboveme ntioned conduct, the Seller shall be deemed to have committed a violation hereunder. Alibaba.com shall have the right to take the following enforcement actions:

Violation Penalty

        1. (a)

  Publishes products that violate s these Rules for the first time .

     The product will be removed.

 1. (b)

  Publishes products that violate s these Rules for the second ti me or subsequent violations

   The product will be completely deleted from the Alibaba.co

m Website.

https://rulechannel.alibaba.com/icbu?type=detail&ruleId=5845&cId=1294#/rule/detail?ruleId=5845&cId=1294 7/03/2022 23:27 Pagina 3 van 7

 1. For any product that is discovered to contain any Falsified Information, such product will not have th e chance to be shown in the search result on the Alibaba.com Website. In the event where the numbe r of a Seller’s products that are discovered to involve falsified MOQ and/or falsified pricing have exc eeded an amount prescribed by Alibaba.com, Alibaba.com shall have the right to adjust the search ra nkings of all products of the Seller on the Alibaba.com Website (or any part thereof) regardless of wh ether all such products are subject to falsified MOQ and/or falsified pricing and to deduct points (su bject to the seriousness of the violation by the Seller as may be determined by Alibaba.com) from the

Seller’s account. For more severe violations, Alibaba.com shall reserve the right to (a) block all the S eller’s products from the Alibaba.com Website; and/or (b) suspend or terminate its account on the Al ibaba.com Website.

D. Product/Store information in violation of the Alibaba.com Website rules

1. Any product and/or store information will be deemed to have violated the rules of the Alibaba.com W ebsite if: (a) there is no specific product name in the title; (b) a product title contains contact informa tion; (c) a product title is crammed with product names; (d) a product title is crammed with descripti ons (including but not limited to product name, brand, model, and descriptive words); (e) there is a di screpancy between the product name in the title and product images; and/or (f) there is a discrepan cy between the title description and the corresponding detailed product descriptions. For the avoidan ce of doubt, the aforementioned list is not exhaustive, and Alibaba.com shall reserve its right to cons true and determine if any product and/or store information has violated any rules of the Alibaba.com Website.

2. For any product that is discovered to be in violation of the Alibaba.com Website rules on product/stor e information, Alibaba.com shall have the right to remove and/or delete the offending product from the A libaba.com Website, and shall deduct one (1) point from the Seller’s account for such violation. In the eve nt the number of the offending products have exceeded an amount prescribed by Alibaba.com, Alibaba.c om shall have the right to take more serious measures against the Seller including to adjust the search r ankings of all products of the Seller on the Alibaba.com Website (or any part thereof) regardless of whet her such products are subject to any violation of product/store information against the Alibaba.com Web site rules and to deduct more points (subject to the seriousness of the violation by the Seller as may be determined by Alibaba.com) from the Seller’s account. For more severe violations, Alibaba.com shall rese rve the right to (a) block all the Seller’s products from the Alibaba.com Website; and/or (b) suspend or t erminate its account on the Alibaba.com Website .

Article 3 - Product information management A. Purging inactive products

1. An inactive product refers to products that have not been edited in the past 180 days and/or has no visitor count, no inquiries (or feedback), no favorite count, no share count, no price comparison, n

o TM query, no wholesale order, and/or no trade assurance order .

2. Inactive products will be removed from the Alibaba.com Website, and the Seller will be urged to opt imize.

B. Product release mismanagement

1. Products that are deemed to be subject to product release mismanagement are those that (a) requ ire re-

editing due to category attribute adjustments; (b) are subject to special industry regulations; or (c) fail to pass the review process of Alibaba.com prior to its release.

https://rulechannel.alibaba.com/icbu?type=detail&ruleId=5845&cId=1294#/rule/detail?ruleId=5845&cId=1294 7/03/2022 23:27 Pagina 4 van 7

 2. Any of the abovementioned products will be removed from the Alibaba.com Website.

Article 4 – Replacement

These Rules shall supersede and replace the “Rules for Enforcement Actions against Non- compliance Relating to Inappropriate Product Postings”.

Article 5 – Amendments

Alibaba.com reserves the right to amend these Rules due to any amendment to any applicable laws and r egulations, any change in the business environment, and/or other reasons of which Alibaba.com may ma ke an announcement on. The amended version of these Rules will come into force as of the date specifi ed in the announcement.

Article 6 - Inconsistency

These Rules shall constitute a part of Alibaba.com International Platform’s General Provisions. Should th ere be any discrepancy between these Rules and Alibaba.com International Platform’s General Provisions , these Rules shall prevail. Matters not provided herein shall be governed by Alibaba.com International Pl atform’s General Provisions. In the event of any discrepancy and/or ambiguity herein, or any inconsisten cy between the Chinese version and a non-

Chinese version of these Regulations, the Chinese version shall prevail.

Article 7 – Final interpretation

Alibaba.com reserves the right of final interpretation and decisions and all relevant rights hereof.

Rules for Enforcement Actions against Non-compliance Relating to Inappropriate Product Postings

Version No.: July 5, 2017 Updated on: July 6, 2017

Alibaba.com has been committed to acting in good faith and actively maintaining a good market order of the platform. In order to stop inappropriate product postings and enhance user experience, these Rules

are hereby formulated in accordance with the Rules for Transactions on Alibaba.com.

Article 1. Definition

Non-

compliance in connection with inappropriate product postings (hereinafter referred to as “Inappropriate Product Postings”) shall refer to non-

compliance by seller in posting product information on Alibaba.com, including but not limited to inapprop riate product title description, miscategorized product, duplicate product postings, false product pricing and false minimum order quantity (MOQ) of product, etc.

Article 2. Types of Non-compliance

1. Inappropriate product title description

Inappropriate product title description includes without limitation: no clear product name in title descripti

 https://rulechannel.alibaba.com/icbu?type=detail&ruleId=5845&cId=1294#/rule/detail?ruleId=5845&cId=1294 7/03/2022 23:27 Pagina 5 van 7

 on; containing contact information in title description; excessive product names in title description; exce ssive product descriptions in title (including without limitation to excessive product names, brands, mode l numbers and descriptive words); inconsistency between product name in title description and product p ictures; inconsistency of seller’ intention stated in product title description and that stated in detailed pr oduct description, etc.

2. Miscategorized product

Miscategorized product refers to product postings that are placed in inappropriate categories.

In selecting product category, seller shall select a category that closest matches and is most appropriate

for your product, and shall not select the category “others” as long as there is any other suitable categ ory. The category recommended by the system shall be for reference only. Seller shall carefully select th e related and suitable category according to the attributes that describe your product.

For prohibited and controlled categories, seller shall select the designated categories in product posti ngs, failing which, such seller shall be deemed to circumvent rules governing the prohibited and restri cted categories and Alibaba.com shall have the right to impose enforcement actions in accordance wi th Enforcement Actions for Displaying Prohibited and Controlled Items .

Examples of prohibited and controlled categories:

(1) In case of posting information on over-the-

counter (OTC) drug, the category “health & medical > medicine” shall be chosen;

(2) In case of posting information on fireworks and firecrackers, the category “Gifts & Crafts > Fe stive & Party Supplies > Fireworks & Firecrackers” shall be chosen;

(3) In case of posting information on police supplies, the category “Security & Protection > police & military supplies” shall be chosen;

(4) In case of posting information on bow and arrow, the category “Sports & Entertainment > Outd oor Sports > Hunting > Bow & Arrow” shall be chosen;

(5) In case of posting information on audio and video product, the category “Consumer Electronic s > electronic publications” shall be chosen.

3. Duplicate product postings

Duplicate product postings refers to the product information posted by seller being identical or similar, o r major product attributes or descriptions (including but not limited to brand, specification, model, materi al, picture, etc.) being identical or similar.

4. False product pricing and false MOQ of product

Such non-

compliance includes without limitation: the product price range posted is significantly different from the market price of similar product in the same industry; the product price posted is low but the shipping co st is significantly higher than average; the shipping cost actually charged is higher than that posted by s eller; providing false MOQ of product, etc.

Article 3. Enforcement Actions

Where seller has committed, or Alibaba.com reasonably believes that seller has committed, the aforemen tioned non-

compliance relating to Inappropriate Product Postings, Alibaba.com will take the enforcement actions as follows:

[Against product]

The product that is involved in Inappropriate Product Postings (except for duplicate product postin gs) will be blocked in search results. Alibaba.com reserves the rights including but not limited to ta ke down or delete such product postings.

For product that is involved in duplicate product postings, such product information will be display ed only once in search results, namely, the product with the highest buyer preference and the best

record effect will be displayed when buyer searches similar product with particular keyword. Other

duplicate product information will not be displayed in search results.

[Against account]

If any non-

compliance relating to Inappropriate Product Postings is found by the platform, the ranking of the entire store shall be lowered in search results for seven (7) days.

In addition, for non-

compliance in product title description, false product pricing and false MOQ of product, 0 penalty point will be deducted for the first three violations in a given year and two (2) penalty points will b e deducted for each of the fourth and the subsequent violations (including violations detected and

    https://rulechannel.alibaba.com/icbu?type=detail&ruleId=5845&cId=1294#/rule/detail?ruleId=5845&cId=1294 7/03/2022 23:27 Pagina 6 van 7

confirmed by the system).

Note:

1. These Rules will be implemented from July 16, 2017.

2. Alibaba.com reserves the right to promptly amend these Rules in accordance with any changes to law s and regulations, changes in business environment and other factors and to announce the same. The a mended Rules will come into force as of the date specified in the announcement.

3. These Rules are an integral part of the Rules for Transactions on Alibaba.com. In case of any inconsis tency between these Rules and the Rules for Transactions on Alibaba.com, these Rules shall prevail. For any matters not covered herein, the Rules for Transactions on Alibaba.com shall apply. In the event of in consistency, ambiguity or conflict between the Chinese and the non-

Chinese version of these Rules, the Chinese version shall prevail.