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China’s New E-commerce
Food Safety Measures
The China FDA recently issued two measures that address food safety for online food sales and restaurant
delivery services. The measures clarify food safety responsibilities in these increasingly important channels.
Compliance will require sophisticated approaches to food safety and supplier management.
E-commerce has changed the path The measures also bring additional Fraudulent information
food takes from farm to table, and costs and complexity for businesses.
has added a new set of risks. These There are challenging compliance Order 27 aims to protect consumers
include traditional food safety risks, requirements for record keeping, from fraudulent marketing and
as well as the use fraudulent information verification, and unfounded health claims. 3rd party
information that deceives or monitoring of online food service platforms and food producers or
endangers consumers. providers and online food producers traders who sell products online are
and traders. E-commerce platforms responsible for the truthfulness of
China’s FDA is actively addressing must ensure that online information online food safety information
food safety and supply chain is factual, and monitor and conduct (article 4). Product information
integrity in these new retail spot checks on food service published online must match that of
channels, and recently published providers’ operations. the products actual label (article 17).
two measures targeting e- It is forbidden to state or imply that
commerce. The “Measure to Handle The new requirements will favor non-health food has health
Online Food Safety Violations”, companies with sophisticated food functions, or that infant formula can
(Order 27), became effective safety and supplier management, improve intelligence, immunity, etc.
starting on 1 October 2016. In efficient operations, and robust (article 17). Health food information
February 2017, the “Draft Measure information technology. must prominently display the
for Oversight of Online Food following: “This product cannot be a
Services” (the Draft Measure) was Order 27 substitute for medicine” (article 19).
published to solicit comments from
Addresses food safety for sales via Transparency
the public. The Draft Measure
3rd party and proprietary e-
specifically addresses the online Food producers or traders who
commerce platforms.
restaurant delivery sector. conduct business online must
E-commerce platforms have prominently display all relevant
What’s new?
food safety responsibilities business, production and trading
The new measures set clear permits and licenses. Food safety
3rd party platforms must have a food
requirements for food producers inspection grades must be
safety management department or
and traders who sell products online prominently displayed on food
at least full time food safety
(online food producers and traders), service providers’ main activity page
management staff (article 14). They
restaurants that sell online for (article 18). Online sellers of health
must set up systems for inspecting
delivery (online food service food, infant formula or food with
and registering online food
providers), and 3rd party e- special medical formulations must
producers and traders, and for
commerce platforms (3rd party display the products’ registration or
examining traders’ activities
platforms). filing certificate, the advertising
(articles 10, 14). If violations are
approval number and a link to the
What does it mean for food detected, the 3rd party platform relevant information on the China
must stop the violation and report to
sector e-commerce? FDA’s website (article 19).
the local FDA. For serious
Clarifying food safety violations, e-commerce platforms Shipping and storage
responsibilities will help protect must promptly cut off services
brands by improving practices (articles 14, 15). Any special requirements related to
throughout the supply chain and storage, transportation, preparation
3rd party platforms must collect and or use must be published online
reducing the risk of food safety
create files for the relevant (article 17). Online food producers
incidents.
information of food producers and and traders must ensure that all
traders, including their food safety measures required to ensure food
staff. Contact and identification safety are taken during shipping
information must be maintained for and storage (article 20).
individual sellers of agricultural
products (articles 11, 12).
Data collection, retention and 3rd party platforms must provide clean,
security non-poisonous containers, utensils and How PwC can help
packaging (article 5). PwC offers a combination of food safety
Order 27 requires 3rd party e-commerce
platforms, and food producers and traders Food service provider information expertise and vast experience with risk
that sell via their own platforms to have the management, internal controls and
capability for data backup and system 3rd party platforms’ responsibilities information technology. We can help
failure recovery, and ensure data security include: real-name registration food service companies design and implement the
and reliability (article 9). Transaction providers, registration of their legal systems required for monitoring and
information must be recorded and representatives, address and contact oversight of thousands of online food
preserved until six months after the shelf- information, as well as prominent display service providers and online food
life ends, or for two years if there is no shelf of the operating permit on the food service producers and traders.
life (article 13). provider’s main activity page (article 4).
PwC has food safety and quality experts
Food service providers’ information must who can help set up training programs and
Draft Measure for Oversight of
be factual, whether posted on 3rd party or in-house food safety management
Online Food Services proprietary platforms (articles 5, 13). departments that are required by the new
Addresses food safety for the online food measures. PwC can help clients with crisis
Data collection and retention management planning to meet
service and delivery.
3rd party platforms and food service requirements for handling food safety
Food safety responsibilities for providers that use proprietary websites incidents and violations.
e-commerce platforms must fulfil record-keeping obligations, We can apply our experience with supplier
including factual recording the name of the management to set up systems and
3rd party platforms are responsible for food product, the time of the order and the
ensuring food safety. They must have food procedures to conduct required spot checks
delivery time and destination. (article 7) and verifications, and to manage
safety management systems and food safety
management staff who have demonstrated Food service providers merchants’ compliance with food safety
their capability through examinations. requirements.
Food service providers who sell online must
They must have systems to manage food
have a physical shop and a food operator
safety emergencies, to handle customer For information on PwC’s Food Supply &
permit (article 8). They must have raw
complaints and to protect consumer rights
material control requirements, and cannot Integrity Services, please visit our website:
(article 2). They must inspect the locations
purchase raw materials that do not meet
and permits of food service providers, and
food safety standards. They must [Link]
sign agreements that clarify food safety
periodically maintain their food processing,
responsibilities (article 4). This article was written by Brian Marterer
storage and display equipment; and
3rdparty platforms must conduct periodically clean and inspect warming, of PwC China.
monitoring and spot checks on food service freezing, and cold storage facilities (article
providers’ operations and services. They 9). They must prevent contact with the
must stop and report violations to the local food by delivery personnel, prevent
FDA. For serious violations e-commerce contamination during delivery, and use
platform services to the violator must be clean, non-poisonous food containers,
cut off (article 6). utensils and packaging materials (article
10). They must take the measures required
to ensure food safety during storage and
delivery, e.g. freshness and temperature
control (article 11).
Contacts us
Amy Cai Samie Wan
Priority Services Food Supply & Integrity Services
Leader Partner
+86 (21) 2323 3698 +852 2289 2019
[Link]@[Link] [Link]@[Link]
Wenjing Cao Brian Marterer
Food Supply & Integrity Services Food Supply & Integrity Services
Partner Senior Manager
+86 (10) 6533 7026 +86 (10) 65338756
[Link]@[Link] [Link]@[Link]
This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.
© 2017 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity.
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