2009-10-26

New Regulations on Online Trading

Due to the frequency of incidents of wrongful pricing in online transactions, which have seriously harmed the interests of both industry and consumers, the Ministry of Economic Affairs has completed a draft of “Matters that Should and Should not be Recorded on Standard Contracts for Online Transactions.” This draft aims at solving the problems often seen in on-line transaction business, such as wrongful pricing, transactions with minors, disclosures of personal information, and shipping issues. The draft not only provides guidelines for industry entities that utilize on-line transaction business, but also enables consumers to understand their rights and interests.

According to the draft, sellers of goods in online transactions are required to provide an “order confirmation mechanism” and to establish a maximum quantity for orders. When a dispute occurs due to personal or systematical error, a seller may cancel the transaction within two days after a buyer has placed his/her order.

The draft will be sent to the Consumer Protection Commission of the Executive Yuan for review and discussion, and it will become effective after approval by the Commission.
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