(Yicai Global) Aug. 27 -- China’s cyberspace watchdog further tightened up the regulations governing the country’s internet sector today by issuing draft rules on the algorithms tech companies use to make recommendations to users.

Internet service providers must provide users must not set up high-consumption algorithm models that induce consumers to overindulge, the Cyberspace Administration of China said in a statement. Users should also be able to turn off algorithm recommendation services, it said.

The algorithm recommendation technology mentioned in the draft Internet Information Service Algorithm Recommendation Management Regulations refers to technologies such as synthesis, personalized push, sorting and selection, retrieval and filtering, as well as scheduling and decision-making, which are used to provide information content for users.

Internet firms that use these technologies should regularly review, evaluate and verify their models, mechanisms, data and application results, according to the draft rules.

The definition of algorithm recommendation technology in the draft covers almost all companies relying on it to provide services online, You Yunting, a senior partner at Shanghai DeBund Law Offices, told Yicai Global.

“In addition to recognized algorithm-driven platforms, such as Toutiao and Douyin (known as TikTok outside of China), those user-generated content platforms like Sina Weibo, and companies that use algorithms to manage platforms such as Didi, Meituan and Ele.me, also come under the purview of the new regulations,” said You.

On or Off Choice

The draft rules recommend that providers should inform users of such services in noticeable ways, and publicize the basic principles, purpose and operating mechanism of the services in an appropriate manner

Liu Feng, a member of China’s Expert Committee of the China Committee of 100 of Digital Economy, told Yicai Global that most users find it difficult to judge companies’ algorithms. What users can control is the right to know and whether to choose the service, for example, to turn the algorithm recommendation on or off, he added.

Regarding providers that also sell goods or provide services, the draft rules said they should protect the legitimate rights and interests of consumers, and should not use algorithms to cause unreasonable differences in trading conditions based on consumer preferences and transaction habits.

The article is in line with China’s Personal Information Protection Law and the E-Commerce Law, which ban big data price discrimination, You said.

The draft rules also provide provisions for the protection of minors. Providers must not push content that may lead the underage to indulge in unsafe behavior and bad habits, transgress social mores and that may affect their physical and mental health. They should also not use algorithms to get minors hooked on the internet.

Editor: Peter Thomas