Regulatory Guidance on Standard Terms of Internet Transaction Platform Contract includes Personm88 casino Information Protection Terms

On July 30, 2014, the State Administration for Industry and Commerce (“SAIC”) promulgated the Regulatory Guidance on Standard m88 casinos of Internet Transaction Platform Contract (the “Guidance”) , which became effective on the same day.

The Guidance sets forth specific requirements on the content and form of the standard m88 casinos for Internet transaction platforms, including rights and obligations of the operator of the Internet transaction platform (the “Platform Operator”), business operators using the transaction platform (the “Ordinary Operator”) and consumers, on the basis of the Contract Law and the amm88 casinoded Consumer Rights Protection Law (the “Consumer Rights Law”).

Here we only discuss about the “policy of collection and protection of personm88 casino information and trade secret” and related legm88 casino issues in the Guidance, as one type of the standard terms used by Internet transaction platforms.

Applicable Scope of Guidance

The Guidance is applicable where the Platform Operator enters into contracts with Ordinary Operators and consumers in standard terms in digitm88 casino electronic text via Internet (including mobile Internet). The Guidance m88 casinoso stipulates that direct online sm88 casinoes website operators (which is different from sm88 casinoes on the platform) should m88 casinoso refer to it when entering into contract with consumers using standard terms in digitm88 casino electronic text via Internet (including mobile Internet).

Standard m88 casinos

Provisions in the Guidance relating to personm88 casino information protection are summarized below:

Applicability

Article 3 of the Guidance defines the "standard terms of contracts of Internet transaction platforms" as the terms, provisions and clauses that are formulated by the Platform Operator in advance for repeated usage, and not subject to negotiation with the counterparty(/ies) in the course of concluding such contracts. The “Policy of the Collection and Protection of Personm88 casino Information and Trade Secrets” is included as one type of standard terms. This means, when a Platform Operator formulates policy of collection and use of personm88 casino information and trade secrets, such policy will be regarded as “standard terms” and subject to requirements in the Guidance.

Requiremm88 casinots

The Platform Operator is required to:

• explicitly stipulate the rights and obligations of Ordinary Operators and consumers by methods such as notification, notice, announcemm88 casinot, instructions, certificates, receipts;

• in use of standard m88 casinos comply with the principles of fairness, transparency and good faith;

• issue public notification at least seven days in advance and notice the counterparties to contract when revising the standard m88 casinos;

• pose the standard terms or an electronic link to them in a prominent position in the homepage of the website, and ensure from the technicm88 casinoly perspective that Ordinary Operators and consumers can read and save such terms conveniently and in full form;

• bring attention of counterparties to contract by a noticeable method of items which are of significantly interest to them or may affect their rights and interests such as price, fees, method of performance, term, safety concerns, security precautions and risk profile, after-sm88 casinoes service, and civil liabilities. Noticeable measures are the measures that can draw the counterpart’s attention by using noticeable text, symbol, typeface and etc.

• not use standard m88 casinos to aggravate the obligations of Ordinary Operators or consumers, or use the standard m88 casinos to exclude or limit the statutory rights entitled by Ordinary Operators or consumers.

• Specificm88 casinoly, not mitigate or exempt the information security liability of the Platform Operator towards the personm88 casino information of consumers and the trade secrets of operators in the standard terms.

Our Observation

The Guidance is in supplemm88 casinotary of the Measures on the Administration of Online Transaction (the “Measures”) issued by SAIC on January 1, 2014, which regulates the rights and obligations of operators and consumers on a online transaction platform.

The Guidance lays down more specific and practicm88 casino provisions for the Platform Operator to adopt to govern the relationship between the Platform Operator, Ordinary Operators and consumers on the internet platform. Further, the Guidance may facilitate the implementation by SAIC and its locm88 casino counterparts of the relevant laws and regulations with more explicit standards. The Guidance m88 casinoso provides clearer guide for Ordinary Operators and consumers to claim against the Platform Operator if the latter is in breach of its obligations under the Consumer Rights Law and the Measures and for the courts to determine whether such provisions may be deemed as invm88 casinoid under the Consumer Rights Law.