Legal Regulation Of E-commerce Credit Speculation

As China’s E-commerce industry continues to grow, new problems have arisen.Among them is the credit hyping issue. Being different from advertising, credithyping is the sharp practices to increase credits in online business in order to attractmore consumers. Credit hyping is very often seen on the internet and always hard toget rid of. It will bring about much negative influences without legal regulation.However, under current legislation, property lost caused by credit hyping is seldomcompensated for the lack of definite laws banning credit hyping.In this article, we investigated on credit hyping for reasons discussed above, aswell as analyzed its composition and manifestation modes. Then negative influencesand theoretical evidences and difficulties is discussed to prove the necessity ofdefinite laws. Among the three main topics, negative influences of credit hypingcontains deceive and false prosperity and cut throat competition among the industry,what’s even worse, the credit system can even be bankrupted. There are manydifficulties regarding legal regulation. For instances, credit hyping is easily conductedand hard to distinguish. Theoretical evidences are mainly composed by judgment andthe market failure theory. For better legal regulation, we insist on the following fourmeans: i. Legislation with definite boundaries which can make it unworthy for credithypes. ii. Establish criterions to judge credit hyping. iii. Enact comprehensive laws. iv.Improve the credit system. At the end of this article, the subject and form as well asthe scope of responsibility, the scope of the victim, and the transaction efficiency ofcredit hyping are discussed from the perspective of legal responsibility.Credit hyping to e-commerce is what cancer to human. Only legal regulation cancure the disease while self-regulation can only cure the symptoms. Only by this canlegal rights of consumers be protected and thus keeping the markets operating.