China’s e-commerce giants dial back “no-return refunds” amid merchant backlash and regulatory pressure

China’s major e-commerce platforms Taobao, JD.com, Douyin, and Kuaishou, are rolling back their controversial “no-return refund” policy that allowed consumers to get their money back while holding on to the purchased product. The move gives merchants more control in refund disputes and marks a shift in how platforms balance consumer protection with seller rights. Originally launched by Pinduoduo in 2021 for perishable goods, the policy expanded across all product categories and became an industry norm by 2023. The aim of the policy was to improve the user experience and curb false advertising and the sale of low-quality goods. But its blanket application sparked controversy with merchants blaming platforms for issuing refunds without properly investigating claims, leading to goods and revenue losses. The policy also became a target for abuse by professional scammers. Chinese regulators flagged the issue during this year’s Two Sessions, prompting platforms to adjust course. Alibaba’s 1688 dropped the policy in March, other platforms are now following suit. [Beijing Business Today, in Chinese]