(Yicai Global) Sept. 5 -- Shanghai plans to impose temporary price limits in the transport and travel sectors to avoid service providers exploiting increased business tourism during the second China International Import Expo in November.
The municipal government will cap rates for hotels, online taxi bookings and public parking lots from Oct. 26 until Nov. 14 to ensure prices remain stable during the event, it said in a statement today. The CIIE, a repeat of the world's first ever import-only expo last year, will run from Nov. 5 through Nov. 10.
Prices at hotels will not be allowed to exceed like-for-like room rates charged between Oct. 1, 2017 and Nov. 30, 2017, according to the forthcoming rules.
Ride-hailing platforms must not charge more than their highest prices from within 30 days before the measures kick in, and providers will need to report what those rates were to the market regulator 10 days after the price limits begin. Parking lots and garages less than 10 kilometers from the Shanghai National Exhibition Convention Center, where the CIIE takes place, may not charge more than when they registered their business.
Companies who fail to comply will have to hand over their illicit earnings and face a fine of up to five times the amount they made illegally. Those that overcharge but fail to benefit will still have to pay a penalty of between CNY100,000 (USD13,970) and CNY1 million, while major violators may need to pay up to CNY5 million (USD700,000) and shut down their business until they fix their prices.
Editor: James Boynton