China unveils guidelines targeting AI livestreaming and unfair eCommerce practices

China's cyberspace watchdog has proposed new guidelines to regulate the use of AI-generated livestreamers on eCommerce platforms, set to take effect from February 2026. 

As part of the proposed guidelines, eCommerce merchants are prohibited from using AI or other technological means to fabricate or disseminate misleading commercial information, impersonate others in commercial promotions, or deceive consumers and businesses.

On the livestreaming front, operators using AI to generate human images or videos must comply with relevant regulations and national standards. They are also required to clearly label such content and provide ongoing reminders to consumers that it is generated by AI and other technologies.

Additionally, platforms must review consumer and merchant complaints promptly and impartially. If a complaint is handled solely by AI and the complainant requests human intervention, the platform must conduct a manual review.

Beyond AI regulation, the proposed rules aim to safeguard the rights of merchants by prohibiting practices such as forcing them to accept “refund-only” after-sales policies or mandating participation in promotional campaigns. Additionally, the guidelines would bring AI-powered digital anchors under the supervision of live commerce regulations, promoting the standardised and responsible use of AI technology in the sector.

Additionally, platforms are barred from mandating merchant participation in promotional activities, restricting merchants to operating on only one platform, or otherwise limiting their independent business decisions.

The guidelines also target unfair pricing practices. Platforms are forbidden from forcing merchants to sell goods or services below cost in line with platform pricing rules. Separate provisions prohibit unreasonable fees, including duplicate charges, payments for services not rendered or inadequately provided, passing platform-specific costs onto merchants, and charging for access to basic business data that merchants are entitled to view.

Further prohibitions extend to coercing merchants into purchasing services or joining paid promotions, imposing disguised fees through excessive deposits or inflated charges, and any other form of unfair charging. Price discrimination against merchants offering the same goods or services under equivalent transaction conditions is also prohibited.

In terms of consumer protection, platforms are prohibited from requiring consumers to pay liquidated damages or compensation that exceed legal limits, and from eliminating consumers' right to independently select goods or services

Meanwhile, the rules ban platforms from denying consumers' rights to claim compensation or from obstructing their ability to file complaints, report violations, seek mediation, apply for arbitration, or initiate litigation. Any other practice that unfairly curtails consumer rights, relieves platforms of legal responsibility, or imposes undue burdens on consumers is prohibited.

To address the issue of price discrimination, platforms may not covertly set different prices or charging standards for the same goods or services under equivalent transaction conditions.

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