China imposes new rules to the sales and marketing of 'mystery boxes'

China’s market regulator has drafted new regulations to govern the sales and marketing of 'mystery boxes'. According to the statement of The State Administration for Market Regulation (SAMR) sellers of mystery boxes should not excessively price their goods, and implement mechanisms that would encourage buyers to rationally purchase such boxes.

This is to bring order to a market which has become a big trend in recent years and seen buying frenzies. Generally, in a mystery box, consumers do not know which toy figurine they will get until they open the box.

As part of the new governance, retailers and companies are not allowed to sell these boxes to consumers under eight, and must obtain their guardians’ permission upon selling the boxes, SAMR said.   The difference in costs of the same series of products or services sold in the form of 'mystery boxes' should not be too huge, and the retail price for 'mystery boxes' should not largely differ from non-mystery box retail products.

Furthermore, 'mystery box' operators should publicise key information such as commodity names, commodity types, commodity styles, extraction rules, commodity distribution, commodity delivery quantity, hidden money extraction probability, commodity value range and other key information in a conspicuous way to ensure that consumers know before purchasing the product.'Mystery box' operators are also required to establish and improve the commodity production and operation record system, keep complete records of extraction probability setting and result extraction, and use this as a basis for actual market launch and distribution of blind boxes to consumers.

For online sales, mystery box operators should establish a tracking record system to ensure that the goods drawn by consumers are distributed in place and consciously accept supervision. Relevant records are generally retained for not less than three years, the SAMR suggested.

'Mystery boxes', also known as 'blind boxes', have evolved in China. Back in September last year, more than 100 puppies and kittens were believed to have been purchased online as 'mystery boxes' were found abandoned in suburban Shanghai, according to SCMP. Earlier in May 2021, another illegal cat and dog mail-order courier operation offering blind boxes was exposed and shut down by animal rights activists in southwestern China.

Earlier this year, a consumer rights group in China has urged the public to boycott KFC China's collaboration with toymaker Pop Mart, which saw dolls given to customers buying blind box meals. In a statement, the China Consumers Association said using limited-edition blind box sales to induce and condone consumers' irrational and excessive purchase of meal sets goes against public order, good customs and the spirit of the law. 

The collaboration between KFC China and Pop Mart offered seven different dolls. The campaign is also part of KFC China's 35th anniversary of the opening of its first outlet on the Chinese mainland. The dolls showcase Dimoo, a character created by Pop Mart, in different outfits and styles such as Colonel Sanders, French fries and sweet corn. To get one of the dolls, customers need to buy a ¥99 (US$15.5) family set meal.