In a major effort to protect customers' interests, China has pledged to regulate online group buying, a thriving market with increasing illegal trading activities in recent years.

The State Administration for Industry and Commerce urged its local authorities to examine the qualifications of online group buying providers and supervise them, according to the latest circular posted on the administration's website on Wednesday.

Problems such as fraud, fake products and price hikes are arising frequently as the industry becomes popular in China, the circular said.