On August 1st, 2021, the State Administration of Market Regulation issued the Management Measures on Serious Violation and Bad-faith List for Market Regulation focusing on key fields to protect the legitimate rights and interests of the parties concerned and construct the unified and standardized management system of the Serious Violation and Bad-faith List.
- Fields that include in the Serious Violation and Bad-faith List
Strictly limit the fields within the domains that seriously endanger the health and safety of people, the order of fair competition of the market and the normal order of society, refuse to fulfill their legal obligations and seriously affect the credibility of the administrative administration, focusing on food, drugs and special equipment which directly relate to people's health and safety as well as infringement of consumer rights.
- Standards for the Serious Violation and Bad-faith List
In order to avoid the improper punishment, heavy penalty for minor misbehavior and abuse for disciplinary measure, only the parties concerned that violate the law and administrative regulation, harmfully and seriously endanger the society, and have already received heavy administrative penalty by the market regulation department, will be included in the Serious Violations and Bad-faith List. Also, the subjective intent, the frequency of violation and duration shall be comprehensively considered.
- Procedures of the Serious Violation and Bad-faith List
The procedures may include notification, hearing, delivery and handling for objection. The determination of whether to include in the List would be made by the law enforcement department in the administrative penalty procedures.
- Protections for legal rights and interests of the parties concerned
The protections may include notice, delivery, objection and application for hearing, the parties' right to know and the right to plead shall be fully protected. Meanwhile, the right to apply for reconsideration and litigation shall be also given.
- Procedures and conditions for credit repair
In order to encourage the untrustworthy parties to take the initiative to correct their mistakes and rebuild the credit, due procedures and conditions of the application for earlier removal from the List (credit repair) are clearly stated. The parties that have been put in the List for over one year, have consciously fulfilled the obligations specified in the administrative penalty decision, have taken the initiative to eliminate the harmful consequences and adverse effects, and have not been punished heavy administrative penalty again, could apply for earlier removal to the market regulation department that made the list-in decision.
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=16520
If you have any question, please contact me.
Mr. Mike Chang (Partner)