Chinese regulators summoned six companies, including Alibaba Group units AMap and Fliggy, on February 13th to address irregularities in their consumer-lending businesses. The National Financial Regulatory Administration, the State Administration for Market Regulation, and the People's Bank of China issued the joint summons immediately preceding the peak Lunar New Year travel season.
Regulators ordered the platforms to standardize marketing practices and increase transparency regarding financial products. The companies must now provide clear disclosures for interest rates, service fees, and the specific lending institutions involved in each transaction.
The mandate also requires these units to overhaul their systems for managing consumer complaints. This regulatory intervention follows a reported surge in consumer grievances linked to the platforms' lending services.