China: Implementation of the Internet Information Service Algorithms Recommendation Management Regulations

The Internet Information Service Algorithm Recommendation Management Regulations come into force on 1 March 2022. The Regulations create rules for companies, establish rights for users, and set forth sanctions in case of non-compliance. Companies should not create algorithms that encourage people to get addicted to their products or spend enormous sums of money. When companies employ algorithms to promote goods or deliver services to consumers, they are not allowed to differentiate prices or trade conditions in an "unreasonable" way. Regarding user rights, users must be informed about algorithmic recommendation services provided by service providers in a clear and concise manner, users must be able to turn algorithmic recommendation services off, and users should be able to select, amend, or delete the user tags that are used in the recommendation algorithm. Furthermore, online platforms are required to implement measures to prevent the dissemination of illegal content and are banned from providing recommendations to content classified as illegal. Infractions of the restrictions result in fines ranging from CNY 5'000 to 30'000, around USD 773 to 4'637.