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Rules for Enforcement Action against Non-Compliance of Transactions on Alibaba.com

 Version No.: 20190118                                                                      Date of Issuance: 20190225



I. Penalties for non-compliance in online transactions

1、Failure to ship goods after an order is placed. After an order becomes effective, if the Seller refuses to perform its obligation of shipment, or if, at the time Alibaba.com accepts the dispute in relation thereto, the Seller still fails to ship the goods after the expiration of the agreed shipment period :

  1. 1 point will be deducted for each occurrence if the Seller and the Buyer have settled the dispute through negotiations and Alibaba.com has not intervened in the dispute;

  2. 2 points will be deducted for each occurrence if Alibaba.com determines that the Seller has breached its shipment obligation but provided an effective solution; or

  3. 4 points will be deducted for each occurrence if Alibaba.com determines that the Seller has breached its shipment obligation and failed to provide an effective solution.
     

2、Delay of shipment. If, at the time Alibaba.com accepts the handling of the dispute, the Seller has failed to ship the goods within the period as agreed in the transaction contract or as agreed by the Buyer and the Seller:

  1. 1 point will be deducted for each occurrence if Alibaba.com determines that the Seller has breached its shipment obligation but provided an effective solution; or

  2. 3 points will be deducted for each occurrence if Alibaba.com determines that the Seller has breached its shipment obligation and failed to provide an effective solution.
     

3、Goods delivered not corresponding to requirements as agreed. If the goods actually delivered by the Seller do not meet the agreed requirement in the transaction contract (including but not limited to, the material/component content/category/safety standard of the goods not corresponding to the agreed requirements, the loss of the major functions or unavailability for use of the goods, quality not up to standard, short shipment):

  1. 1 point will be deducted for each occurrence if Alibaba.com determines that the Seller was in breach of the transaction contract but provided an effective solution; or

  2. 3 points will be deducted for each occurrence if Alibaba.com determines that the Seller was in breach of the transaction contract and has failed to provide an effective solution.
     

4、Breach of undertakings. 3 points will be deducted for each occurrence if the Seller fails to comply with any of the following undertakings:

  1. to give the Buyer discounts, gifts, services and other benefits than the subject matter of the transaction as agreed;

  2. to provide the Buyer with after-sales services such as return and replacement of goods, spare parts, repair and quality warranty as agreed;

  3. to perform service commitments in accordance with marketing rules or service agreements; and

  4. other undertakings (unless otherwise provided).

No point will be deducted if the Seller pays liquidated damages to the Buyer as agreed between the Buyer and the Seller or pursuant to other rules of Alibaba.com, or if the Buyer and the Seller reach a settlement agreement.
 

5、Failure to fulfill any settlement agreement or any decision made by Alibaba.com in dispute mediation. If the Seller refuses or fails to fulfill the settlement agreement upon negotiations between the Buyer and the Seller or the decision made by Alibaba.com in dispute mediation, including but not limited to refund, replacement of goods, supplement of goods, reshipment of goods, repair, payment of liquidated damages or compensations, then 3 points will be deducted for each occurrence.

Notes: The Seller shall be deemed to have performed the obligation of refund either in the proactive manner (i.e. after the Buyer and the Seller reach an agreement through negotiations automatic deduction from the balance of the Seller’s account provided that the balance is sufficient) or in the passive manner (i.e. after the Buyer and the Seller reach an agreement through negotiations, if the balance of the Seller’s account is not sufficient, payment by Alibaba.com on behalf of the Seller and deduction of the corresponding amount from the Seller’s account within 15 days after payment by Alibaba.com on behalf of the Seller).
 

6、Sale of counterfeit goods. If the Seller sells goods that infringe on other parties’ intellectual property rights, and Alibaba.com determines that the Seller shall be liable therefor, then will be punished according to the Enforcement Actions for Intellectual Property Rights Infringements Claims on Alibaba.com.
 

7、Malicious collusion. If the Seller and the Buyer, by taking advantage of Alibaba.com, collude in committing any act that is prohibited by laws or other rules of Alibaba.com, or in hopes of seeking improper benefits, 12 points will be deducted against the Seller for each occurrence. If the Buyer is involved in the act above, Alibaba.com will determine the gravity thereof and impose penalties on the Buyer accordingly, including but not limited to closure of the Buyer’s account.
 

8、Provision of false evidence. If, during the course of dispute mediation process between the Buyer and the Seller, any fabricated, false or forged evidence is provided or other party’s evidence is fraudulently used, 12 points will be deducted against the Seller for each occurrence. If the Buyer is involved in the act above, Alibaba.com will determine the gravity thereof and impose penalties on the Buyer accordingly, including but not limited to closure of the Buyer’s account. 

If the Seller commits any of the above non-compliance, which is determined by Alibaba.com to be serious and detrimental to the proper operation of the platform, Alibaba.com shall have the right to directly close the Seller’s account and take other measures.

 

II. Penalties for fraud in offline transactions

1、If the Seller fails to ship goods after receipt of payment:

  1. 6 points will be deducted for each occurrence if Alibaba.com determines that the Seller has committed fraud but provided an effective solution; or

  2. 48 points will be deducted for each occurrence if Alibaba.com determines that the Seller has committed fraud and failed to provide an effective solution.

2、 If the Buyer fails to make payment after receipt of goods, Alibaba.com will determine the gravity thereof and impose penalties on the Buyer accordingly, including but not limited to closure of the Buyer’s account.

 

III. If the Seller violates other transaction rules or commits any dishonest business conduct, Alibaba.com shall have the right to take measures against the Seller’s account according to the harm and actual seriousness thereof, including but not limited to removal of trade assurance marks from the Seller’s products and store, freezing or canceling the trade assurance amount, restricting the withdrawal, and termination of trade assurance service, etc.

IV. Alibaba.com will monitor and review the Sellers’ overall non-compliance in transactions and has the right to take corresponding penalty measures against those who seriously disrupt the transaction order on Alibaba.com.

IV. Alibaba.com will monitor and review the Sellers’ overall non-compliance in transactions and has the right to take corresponding penalty measures against those who seriously disrupt the transaction order on Alibaba.com.

V. In no event will penalty imposed by Alibaba.com hereunder discharge the user from any liability for compensation under laws and regulations, other rules and agreements of Alibaba.com, transaction contracts or other agreements between the Buyer and the Seller.

VI. Alibaba.com has the right to amend these Rules in light of the changes in laws and regulations, business environment or other reasons. The amended Rules will come into force upon expiration of the publicity period.

VII. These Rules are an integral part of the Rules of Alibaba.com. In case of any inconsistency between these Rules and the Rules of Alibaba.com, these Rules shall prevail. For any matters not covered herein, the Rules of Alibaba.com shall apply. If there is any inconsistency, discrepancy or conflict between the Chinese version and other language versions of these Rules, the Chinese version shall prevail. 

 

Enforcement actions

 

Penalty points cumulatively incurred

Enforcement actions

Remarks

6 points

Issuance of severe warning

Email notification

12 points

Blocking of search results and mini-site for 7 days

Email notification and automatic enforcement of penalty by system

24 points

Blocking of search results and mini-site for 14 days

36 points

Blocking of search results and mini-site for 21 days

48 points

Termination of membership

Not applicable

Note:

a)    In case of extremely serious non-compliance, Alibaba.com has the right to immediately terminate the agreement unilaterally and close the account without refunding service fees for the remaining period, and also has the right to announce the same on Alibaba.com and/or other media, impose associated penalties and/or permanent refusal of cooperation and other enforcement actions. 

b)     Where the cumulative penalty points of a user reach 24 points or above, Alibaba.com has the right to refuse or restrict such user’s participation in various promotions and marketing activities on Alibaba.com or to use the products/services. 

c)     Points are cumulatively calculated on a yearly basis, which means that all penalty points are on record for a 365-day period, except where enforcement action of closing the account has been imposed.

 

In the event of any inconsistency between the English and Chinese versions of these Rules, the Chinese version shall prevail.

 
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