Service providers must abide by business ethics and
principles of fairness and should not set up algorithm models that entice users
to spend large amounts of money or spend money in a way that may disrupt public
order, the Cyberspace Administration of China said in a statement.
Algorithms should not be used to create fake user accounts
and users should be given the option to easily turn off algorithm
recommendation services, it said, adding that the draft is open for public
feedback until September 26.
The move comes amid a wide-ranging crackdown by Beijing on
its Internet sector, which has seen authorities target and punish companies on
issues ranging from monopolistic behaviour to consumer privacy.
Earlier this year, the Chinese Consumer Association
criticised Internet companies for misusing personal data and
"bullying" people into purchases and promotions. State media have
since issued multiple calls for regulating the use of such algorithms.
Internet companies globally use algorithms to predict user
preferences and make recommendations. In China, this would include firms such
as e-commerce giant Alibaba Group, ride-hailing firm Didi Global, and TikTok
owner ByteDance.
China recently passed a data security law that will go into
effect on September 1 to protect Internet users' rights in cyberspace and
impose curbs on its fast-growing Internet industry.
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