In order to implement Anti-unfair Competition Regulation of Shanghai Municipality and Anti-Unfair Competition Law of the People's Republic of China, Shanghai Administration for Market Regulation would work on a special rectification on anti-fair competition to promote the high-quality development for economy.
The main task is to examine and punish the highlighted violations about the new problems that occur during the COVID-19 pandemic and common concerns that people pay attention on through group investigation and cooperative law enforcement, aiming to further improve the business environment within Shanghai city. This special rectification would be divided into three phases.
Phase Ⅰ: Pre-check (January 20th to February 28th of 2021)
The key point is to punish those anti-fair competitions which were discovered in the fields of Internet platform economy, COVID-19 prevention and fishing prohibition at Yangtze River, and also those acts of scalping, fake propaganda and commercial defamation in the fields of online shopping and online live sale. Pre-check shall base on wide and specific proofs which analyzed through complaints, reports, network supervisions, advertisement monitoring and also the actual situation within the jurisdiction area. Enterprises shall ensure their entity responsibilities, actively cooperate for investigation, and offer clues for illegal abnormal data.
Phase Ⅱ: Law enforcement (March 1st to October 31st of 2021)
Start the law enforcement actions for severe operators and questionable industries based on the results of the pre-checks. For those violations which may involve crime or which cross functions of different departments, it shall be removed to relevant department and perform cooperative law enforcement in time to punish precisely. For those violations which cross multiple districts within Shanghai city, appointed jurisdiction shall be applied in time to prevent proof from losing and protect the punishment in all directions.
Phase Ⅲ: Conclusion drawing (November 1st to November 30th of 2021)
Due conclusions and experiences shall be sum up, those effective measures shall be listed, copied and promoted to form a powerful impression to prevent the situation from backward going. As for the classic cases and serial cases with large social influences and law enforcement results, the propaganda of which shall be increased to reach more public awareness and deter operators who branch the law, and finally to maximum the effect of this special rectification.
If you want to read the complete article, you can refer to the below link (in Chinese only): http://www.shanghaiinvest.com/cn/viewfile.php?id=15835
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Mr. Mike Chang (Partner)