State Administration for Market Regulation issued an amendment for Measures for Penalties against Infringement upon Consumers' Rights and Interests (the “Measure”) in order to further protect lawful rights of consumers and social orders based on Law of People’s Republic of China on the Protection of Consumer Rights and Interests.

The Measure would be applied under the situations that operators’ behaviors do harm to consumers’ interests when consumers purchase or use the commodity or accept the service for living needs.

The punishment shall be combined with education like suggestion, interview and demonstration and shall be applied under the principles of fair, public and timely.

Operators shall not provide any commodity or service which is:

1. Not compliant with the standards of personal or property security;
2. invalid or deteriorated;
3. forged with producing area, forged or illegally used factory name and factory address of others, falsified with production date;
4. forged or illegally used quality mark as identity mark and others;
5. violating exclusive right to use registered trade mark of others;
6. forged or illegally used the unique name, packaging and decoration of famous commodity;
7. adulterated or to use fake commodity as genuine or sub-standard product as standard;
8. eliminated and discontinued to sell by the State;
9. intentionally used for substandard measuring instruments or undermined the accuracy;
10. for deceiving price or fee from consumer and failing to provide commodity or service as agreed.

The provided information about commodity or service from operators to consumers shall be valid, overall and accurate, there shall not be any fake propaganda or propaganda that may lead a misunderstanding as:

1. Providing commodity or service without true name and mark;
2. providing commodity or service with false or misleading description, standard or physical sample;
3. false or misleading live demonstration and illustration;
4. fraudulent sales induction by fictitious transaction, fictitious trading volume, fake comments or hiring others;
5. selling commodity or service using fake "clearance prices", "markdown sale", "lowest prices ", "preferential prices" or other deceptive prices;
6. selling commodity or service by fake sales with prizes, repayment of capital or experience;
7. fake sale "processed products", "defective products", "foreign-equal products" by declaring for genuine products;
8. misleading consumers by exaggerating or concealing information that has a significant interest in the number, quality and function of the commodity or services provided.

For those operators who have been given administrative punishments by Administration for Market Regulation according to laws, regulations and this Measure, the punishments shall be filed in the credit documents of operators and published to the public in time through the Enterprise Credit Information Publicity System.

If you want to read the complete article, you can refer to the below link (in Chinese only):  http://www1.shanghaiinvest.com/cn/viewfile.php?id=15457

If you have any question, please contact me.

Mr. Mike Chang (Partner)

TEL: 0086-21-68868321

Email: mikechang@shanghaiinvest.com