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Taiwan toughens rules on e-commerce businesses

Amendment aims to close regulatory loopholes exploited by online businesses

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(Pixabay photo)

(Pixabay photo)

TAIPEI (Taiwan News) — E-commerce businesses will now be subject to tighter regulation in Taiwan after the legislature passed the third reading of an amendment to the Commodity Labeling Act (商品標示法) on Tuesday (May 3).

Taiwan has seen an upward trend of online shopping with the advent of a robust e-commerce scene, but controversies have arisen due to lack of proper regulation on businesses without brick-and-mortar stores.

The changes in the Commodity Labeling Act stipulate that the competent authorities can demand e-commerce platforms provide information on registered product suppliers or posters. Violators will be fined between NT$20,000 (US$677) and NT$200,000.

The same penalty applies to manufacturers, importers, distributors, and storage or sorting facilities of items available via electronic channels that are found to circumvent, obstruct, or refuse inspections by the authorities, per CNA.

Meanwhile, businesses will risk the suspension of operations for a period of up to six months or permanent closure in the case of a serious breach of the law, according to the legislature, to better safeguard the rights of consumers.