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General Administration of Market Regulation: Consumer complaints and reports present ten characteristics

General Administration of Market Regulation: Consumer complaints and reports present ten characteristics

According to news from the General Administration of Market Supervision on the 14th, in 2022, the national market supervision departments will accept a total of 29.4077 million consumer complaints, reports and consultations through the national 12315 platform, telephone, fax, window and other channels, a year-on-year increase of 23.5%. Among them, there were 13.1038 million complaints, 4.7223 million reports, and 4.519 billion yuan in economic losses for consumers, effectively protecting the legitimate rights and interests of consumers. It mainly presents ten characteristics:

Photo courtesy of the State Administration for Market Regulation

  1. Consumption complaints are accumulating at an accelerated rate, and the recovery and expansion of consumption requires balanced development

Due to the cross-regional expansion of the platform economy, the cross-regional flow of population and capital, and the cross-regional allocation of market elements, consumption in Guangdong, Zhejiang, Shanghai, and Beijing is accelerating agglomeration. The number of consumer complaints is positively correlated with the level of consumption activity. The proportion of consumer complaints in the four provinces and cities in the country will increase from 31.8% in 2020 to 45.16% in 2022. The accelerated concentration of consumer complaints reflects the unbalanced development of the supply side of consumption to a certain extent, and it is necessary to further restore and expand consumption in the central and western regions to promote higher-quality and more balanced development.

  2. Recovering losses of over 10 billion, boosting confidence and releasing vitality

Market supervision departments at all levels have dealt with a total of 74.5229 million complaints, reports and consultations, recovering economic losses of 14.472 billion yuan for consumers, effectively defending the legitimate rights and interests of consumers, protecting consumption capacity and endogenous economic power. Increase rights protection for goods and services that the masses are concerned about. For example, the mediation success rate of fiber products, medical equipment, production maintenance and repair services has increased significantly compared with the previous year, with an increase of 15.51, 13.15, and 12.26 percentage points respectively.

Through the continuous implementation of the “five-level cycle linkage” performance evaluation, the disposal efficiency of the national 12315 platform has been greatly improved. The on-time handling rate of complaints and reports was as high as 98.99%, an increase of 12.55 percentage points; the highest level of public satisfaction was 4.74 points (out of 5 points). At present, the platform has a total of 16.0108 million registered users, with an average annual increase of 3 million, and has become a consumer rights protection platform trusted by ordinary people.

Photo courtesy of the State Administration for Market Regulation

  3. Rapid response and effective handling, complaints and reports of epidemic-related materials quickly dropped

From November 10, 2022 to the end of 2022, the national 12315 platform received 241,100 complaints and reports related to epidemic-related drugs and medical supplies, a year-on-year increase of 3.88 times, a month-on-month increase of 2.95 times, and a peak of 19.5 times. Among them, there were 141,800 complaints, 99,300 reports, and 4.9817 million yuan of economic losses were recovered.

As of February 10, reports on prices related to the epidemic, unfair competition and advertising reports, online transaction supervision reports, product quality reports, and reports on the production and circulation of pharmaceuticals and medical devices have dropped significantly by 99.14%, 87.87%, and 73.89%, 88.35%, and 87.79%, the demand for epidemic-related drugs and medical supplies has returned to daily life, and the market order has stabilized.

  4. The downward pressure on the economy has increased, and after-sales problems such as no delivery and no refund have become more prominent

In 2022, the national market supervision departments will accept 13.1038 million consumer complaints, a year-on-year increase of 43.84%, and the growth rate has been enlarged compared with 2021. In terms of complaints, there were 2,987,000 quality complaints, 2,489,600 after-sales services, 1,159,100 contracts, and 1,090,600 food safety complaints, accounting for 58.96% of the total complaints. Among them, the problem of after-sales service has the fastest growth, and the public has the strongest feedback, with a year-on-year increase of 57.67%.

The status of after-sales service is directly related to the confidence and expectations of operators. Affected by the epidemic, after-sales service issues have become prominent. Consumer appeals are mainly focused on no refunds, no delivery, failure to fulfill the “three guarantees” commitment, failure to implement the seven-day unreasonable return obligation, and untimely delivery. From the perspective of commodity categories, mobile phones, shoes, outerwear, furniture, and automobiles are mainly concentrated, accounting for 25.61% in total; printed matter, dairy products, computer peripherals, air conditioners, and luggage have increased by 154%, 120%, 98%, and 98% year-on-year respectively. , 90%.

  5. The proportion of commodity complaints has increased, and the consumption of new energy vehicles has shortcomings

In 2022, the national market supervision departments will accept a total of 8.6232 million product complaints, accounting for 65.81% of the complaints, an increase of 4.37 percentage points over the previous year; 4.4806 million service complaints, accounting for 34.19% of the complaints. The increase in the proportion of commodity complaints reflects the prominent product quality problems under the downward pressure of the real economy. Among them, the top complaints are: general food, clothing, shoes and hats, household goods, household appliances, transportation, and communication products, accounting for 58.43% . The top service complaints are: catering and accommodation, sales, Internet services, culture, entertainment and sports, beauty salons and bathing, accounting for 46.37%.

It is worth noting that with the rapid increase in the penetration rate of new energy vehicles, consumers’ requirements for quality are also constantly improving. In 2022, the platform will receive 16,000 new energy vehicle complaints and reports, a year-on-year increase of 62.84%. Among them, contract issues, quality issues, and false publicity issues have grown rapidly, with year-on-year increases of 126.33%, 77.35%, and 75.65%, respectively. Consumer appeals focus on: imperfect after-sales service, non-fulfillment of the “three guarantees” promise; sudden engine failure, oil leakage, abnormal engine noise, brake steering failure, battery module damage; release of false information to induce consumers to sign unfair format terms , to reduce the responsibility of car companies.

  6. New consumption hotspots continue to emerge, accompanied by rising consumption disputes

In recent years, “new consumption” is becoming an “accelerator” of economic development. While satisfying the diversified needs of consumption, some new situations of infringement and new difficulties in rights protection have gradually been exposed, reflecting new pain points in consumer rights protection.

In 2022, problems with new models such as digital collections (NFT) will rise, and supervision will become more difficult. There will be 59,700 related appeals (only 198 in the previous year), mainly focusing on non-delivery, non-refund, malicious price hikes, and high charges. Fees, random banning of consumer accounts, etc. Under the upsurge of “blind boxes”, consumers demanded as many as 41,400 pieces, a year-on-year increase of 61.72%. IP cross-border joint products set off a frenzy of buying, with 38,100 related appeals, a year-on-year increase of 66.96%. Some merchants took the opportunity to raise prices, but problems such as uneven product quality, counterfeit and shoddy products, delayed delivery, and lack of after-sales service were prominent. Behind the popularity of camping and other outdoor sports, the demand for sunscreen products and mosquito repellent products increased by 99.12% and 149.62% year-on-year respectively. Ice and snow sports are popular, but related appeals reached 8,677, a year-on-year increase of 60.51%. Quality problems such as ski suits and snowboards are prominent, and ski resort tickets, deposits, and safety issues need urgent attention.

  7. Online consumption continues to upgrade, and consumer satisfaction still needs to be improved

With the continuous development of my country’s e-commerce, the epidemic has catalyzed online consumption habits, and the online shopping field has steadily ranked “half of the country” in the demands of consumers across the country. In 2022, the demand for online shopping will increase by 56.38% year-on-year. There are three main characteristics:

(1) The “cloud consumption” industry has expanded rapidly, and complaints have grown rapidly

Various “cloud consumption” models such as live streaming, cross-border e-commerce, fresh food e-commerce, online group buying, online entertainment, and private kitchen customization have emerged, becoming the growth spotlight of last year’s weak consumption, but related demands are also rising. There were 220,900 requests for live streaming, a year-on-year increase of 1.15 times, and an increase of 5.01 times compared with 2020. Problems such as three-no products, shoddy products, and false propaganda continue. There were 334,500 cross-border e-commerce appeals, a year-on-year increase of 42.63%, and an increase of 1.47 times compared with 2020. The problems of negative after-sales service, non-fulfillment of warranty commitments, and counterfeiting of overseas products are prominent.

(2) There are many new types of price fraud, and supervision and law enforcement are facing new challenges

Technologies such as the big data algorithm of the platform economy have improved transaction efficiency, and it is also easy to induce new types of price fraud. There were 106,700 online shopping price appeals, a year-on-year increase of 99.03%, mainly including problems such as big data familiarization, real-time changes in transaction conditions, “low price and high price”, concealment of discount threshold conditions, non-member discounts greater than members, etc. Regulatory enforcement poses higher challenges.

(3) There are many service routines for video members, and the consumption experience needs to be improved urgently

At present, paid membership has become the “standard configuration” of video websites, but membership services lack “standard configuration”, with 8,534 related appeals, a year-on-year increase of 103.82%. The problems reported by consumers mainly focus on: unreasonable advanced on-demand, suspected of repeated charges; “advertisement-free” is not honored, and video advertisements are inserted; the reminder of automatic renewal is not obvious, the cancellation method is difficult to check, and consumers are easy to buy by mistake. Others rely on word games such as adjusting fees and changing rights and interests to make up for losses and reduce user trust.

  8. “ODR” continues to expand, and the diversified resolution of disputes is steadily improving

The market supervision department has vigorously promoted the construction of an online consumer dispute resolution (ODR) mechanism, and the success rate of reconciliation and consumer satisfaction have been steadily improving. A total of 114,000 ODR companies have entered the national 12315 platform, and directly negotiated 3,094,800 disputes with consumers online. Compared with the traditional administrative mediation method, the average processing time is 7.69 days, which is greatly reduced by 14.2 days; the success rate of reconciliation has increased by 11.25 percentage points; covering 97% of the cities, an increase of 2.36% over the previous year, fully releasing the potential of ODR Advantages of institutional innovation. In general, the social influence of ODR continues to expand, and the enthusiasm of market players for voluntary participation continues to increase, making a useful exploration of diversified solutions to consumer disputes and social co-governance.

  9. “Publish” consumer complaint information to effectively strengthen source governance

The State Administration for Market Regulation continues to promote the publication of consumer complaint information, formulates a publicity system, and builds a publicity system. It will start pilot projects in some cities in Jilin, Guangdong, Sichuan, and Xinjiang from November 2022. 20,817 pieces of complaint information from 14,114 companies have been publicized, effectively strengthening social supervision and credit constraints, and improving the transparency of the consumption environment, the integrity of operators, and consumer satisfaction. After the public announcement, the success rate of complaint mediation in the pilot areas increased by 8.39 percentage points compared with before the public announcement, and 5.97 percentage points higher than the same period last year; the average complaint settlement time was 11.77 days, 2.17 days faster than the same period last year; consumer evaluation was 4.8 points (full score 5 points), 0.1 points higher than before the announcement.

  10. Complaints and reports have become an important channel for discovering illegal clues, and the social supervision role of consumers continues to emerge

Consumers actively play the role of social supervision. In 2022, they will report 4.7223 million illegal clues to the market supervision department, a year-on-year increase of 40.34%. There were 341,800 illegal acts. In terms of growth rate, reports of unfair competition, trademark violations, and online transaction violations all increased by more than 60% year-on-year.

The market supervision department adheres to the orientation of people’s livelihood, strengthens the analysis and judgment of complaints and reports, and strictly investigates and punishes violations of laws and regulations in accordance with the law. 281,100 cases were filed for illegal advertisements and false propaganda; 63,000 cases were filed for violations of consumer rights and interests, mainly involving the sale of products that did not meet safety requirements, counterfeit and shoddy products, and fraudulent consumers; 48,700 cases were filed for food safety violations pieces. (China New Finance and Economics)

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