China issues rules on mystery boxes, regulates sales to children (updated)

Pop Mart International

15/06/2023 11:31

(Writesthrough, adds background)
       BEIJING, June 15 (Reuters) - China's market regulator
issued trial guidelines on business practices primarily for the
toy industry on Thursday, banning the sale of mystery boxes to
children under the age of eight years, and requiring a
guardian's consent for older children.
    The market for mystery boxes, whose contents are sold
undisclosed and which are also known as blind boxes, has grown
quickly, contributing to the fast expansion of domestic
toymakers such as Pop Mart  9992.HK .
    While toy makers have been the main sellers of mystery
boxes, sellers of other, sometimes dangerous, products have used
the mystery box to entice buyers.
    The China Consumers Association said in January last year
that blind box sales were expanding in a disorderly manner, with
contents in some cases including pets to air tickets.  An
increasing number of problems have emerged in the sector, it
said.
    The new State Administration for Market Regulation (SAMR)
rules stipulate that live animals, drugs, medical devices,
flammable and explosive substances cannot be sold in the form of
mystery boxes.
    Boxes sellers must not use blind boxes to engage in, or to
disguise gambling activities, the rules said. The sellers should
also "reasonably determine prices of mystery boxes based on
production and operation costs" as well as market supply and
demand conditions.
    Pop Mart's Hong Kong shares closed up 1.49%. 

 (Reporting by Beijing Newsroom; editing by John Stonestreet &
Simon Cameron-Moore)
 ((qiaoyi.li@thomsonreuters.com;))