Procedures for Punishing Acts of Contravening Consumer Rights to be Introduced as of 15 March

In order to protect the rights and interests of consumers in their purchase and use of products and services for everyday consumption, the State Administration for Industry and Commerce (SAIC) has issued the Measures for Punishing Acts of Infringing Consumers' Rights and Interests. This new legislation will come into effect on 15 March 2015.

Companies conducting sales in the Chinese mainland should be aware that their products and services need to comply with these new regulations. Any business operators committing acts that run contrary to consumer rights and interests will be subject to the relevant punishment, while the details of such infringement will be made publicly available.

In line with these procedures, business operators supplying products or services are warned not to undertake any of the following:

(1) The sale of products or the provision of services that fail to comply with the requirements related to personal and property safety.

(2) The sale of products that are no longer effective or have deteriorated.

(3) The sale of goods where an untrue production location, an untrue or incorrect factory name and/or address or a misleading production date have been specified.

(4) The sale of products with untrue or counterfeit quality markings (such as certification compliance).

(5) The sale of products or the provision of services that infringe on the exclusive registered trademarks of third parties.

(6) The sale of counterfeit goods under branding, packaging or style of authentic, established products.

(7) The sale of products containing impurities or false ingredients, the sale of counterfeit products passing off as genuine items, the sale of inferior products in lieu of superior products, and the sale of substandard products passed off as quality-approved items.

(8) The sale of products that the state has formally declared to be obsolete and subsequently banned from sale or distribution.

(9) The deliberate use of faulty or deliberately misleading measuring instruments in the course of supplying any products or services.

(10) The deception of consumers with regard to the payment for goods or services by not supplying those products or services or by not adhering to the agreed terms and conditions.

The legislation also clearly slates that no false or misleading promotional acts are permitted, while setting out specific provisions regarding the repair, re-manufacture, replacement or return of goods.

Further information can be found at the following link: Measures for Punishing Acts of Infringing Consumers' Rights and Interests.