Page 126 - 2017 White Paper
P. 126
7 White Paper on the Business Environment in China
(4) Adds the obligations of operators to clarify The Draft deletes the provision of Article 11 of the
information of premium sales, and increases the limit of current law, thus selling commodities at prices lower than
the highest prize in premium sales. costs may not be an unfair competitive act.
The Draft adds an additional Article 10, which reads: 5. Intensify the Punishment
“The operators may not conduct premium sales with
consumers: (1) Article 23 of the current law reads that “where
public utility enterprises or other operators having
· to not clearly indicate information as to the type, monopolistic status according to law force others to
claiming conditions, amount or the specific prize, which buy goods of the operators designated by them so as
negatively affects the claiming of prizes by consumers; to prevent other operators from competing fairly, the
controlling and inspecting authorities at the provincial
· to falsely declare to have prize or intentionally make level or the level of cities that are not divided into districts
a designated insider win the prize; shall order them to desist from the illegal acts and may
punish them by imposing, according to circumstances,
· to set unreasonable conditions for claiming a prize; or fines of more than 50,000 yuan and less than 200,000
· lottery-attached premium sales with the highest yuan. Where the designated operators take advantage of
prize exceeding 20,000 yuan. the illegal arrangements to foist inferior but high-priced
goods on buyers or make exorbitant charges, the control
‘Premium sales’ in the Law includes lottery-attached and inspection authorities shall confiscate the illegal
sales and premium sales with additional gifts. To give income and may, according to circumstances, impose
certain prizes under the same conditions as a premium fines of more than twice and less than three times the
sale with additional gifts; to determine types of prizes or illegal income”.
whether to give prize or not randomly is lottery-attached
premium sale.” In the Draft, the above Article is amended to:
“Article 19: Where an operator engages in activities
The Draft emphasizes the operators’ obligation of that violate Article 6 of this Law, the supervision and
indicating the types, terms and conditions to claim prizes, inspection department shall order it to make rectification,
prize amounts and other information regarding premium and impose a fine of not less than one time but not more
sales and improves protection of consumers’ rights and than five times the amount of the illegal turnover, or a
interests. In addition, the Draft increases the maximum fine of no less than 100,000 yuan but no more than
amount of the prize of any lottery-attached sales to 3,000,000 yuan in light of the circumstances, in case there
20,000 yuan. is no illegal turnover or the illegal turnover is difficult to
estimate.
4. Delete Part of the Acts that were Considered as
Unfair Competition Acts in the Current Law Where an operator of designated commodities
engages in activities that violate Article 6 of this Law,
Deletes Article 11 of the current law, which reads: it shall be punished in accordance with the preceding
“Operator may not, for the purpose of driving out their paragraph.”
competitors, sell their commodities at prices lower than
costs. This article increases the penalty level on monopoly. If
the operator engages in a monopoly, it will impose a fine
Any of the following shall not be deemed as unfair equal to five times its illegal business revenue. If there is
competition acts: no illegal business revenue or it is uncountable, the fine
will be 100,000 yuan to 3,000,000 yuan.
(1) to sell fresh or live commodities;
(2) to dispose of commodities nearly before their (2) Article 22 of the current law reads: “Operator
expiration or the other overstocked commodities; who bribe by giving money or properties or using any
(3) seasonal sales; or other method in order to sell or purchase commodities
(4) to sell commodities at lowered prices for paying and violate the Criminal Law, shall be investigated
off debts, changing the line of production or suspending in accordance with the Criminal Law; if the acts as
business.”
126
(4) Adds the obligations of operators to clarify The Draft deletes the provision of Article 11 of the
information of premium sales, and increases the limit of current law, thus selling commodities at prices lower than
the highest prize in premium sales. costs may not be an unfair competitive act.
The Draft adds an additional Article 10, which reads: 5. Intensify the Punishment
“The operators may not conduct premium sales with
consumers: (1) Article 23 of the current law reads that “where
public utility enterprises or other operators having
· to not clearly indicate information as to the type, monopolistic status according to law force others to
claiming conditions, amount or the specific prize, which buy goods of the operators designated by them so as
negatively affects the claiming of prizes by consumers; to prevent other operators from competing fairly, the
controlling and inspecting authorities at the provincial
· to falsely declare to have prize or intentionally make level or the level of cities that are not divided into districts
a designated insider win the prize; shall order them to desist from the illegal acts and may
punish them by imposing, according to circumstances,
· to set unreasonable conditions for claiming a prize; or fines of more than 50,000 yuan and less than 200,000
· lottery-attached premium sales with the highest yuan. Where the designated operators take advantage of
prize exceeding 20,000 yuan. the illegal arrangements to foist inferior but high-priced
goods on buyers or make exorbitant charges, the control
‘Premium sales’ in the Law includes lottery-attached and inspection authorities shall confiscate the illegal
sales and premium sales with additional gifts. To give income and may, according to circumstances, impose
certain prizes under the same conditions as a premium fines of more than twice and less than three times the
sale with additional gifts; to determine types of prizes or illegal income”.
whether to give prize or not randomly is lottery-attached
premium sale.” In the Draft, the above Article is amended to:
“Article 19: Where an operator engages in activities
The Draft emphasizes the operators’ obligation of that violate Article 6 of this Law, the supervision and
indicating the types, terms and conditions to claim prizes, inspection department shall order it to make rectification,
prize amounts and other information regarding premium and impose a fine of not less than one time but not more
sales and improves protection of consumers’ rights and than five times the amount of the illegal turnover, or a
interests. In addition, the Draft increases the maximum fine of no less than 100,000 yuan but no more than
amount of the prize of any lottery-attached sales to 3,000,000 yuan in light of the circumstances, in case there
20,000 yuan. is no illegal turnover or the illegal turnover is difficult to
estimate.
4. Delete Part of the Acts that were Considered as
Unfair Competition Acts in the Current Law Where an operator of designated commodities
engages in activities that violate Article 6 of this Law,
Deletes Article 11 of the current law, which reads: it shall be punished in accordance with the preceding
“Operator may not, for the purpose of driving out their paragraph.”
competitors, sell their commodities at prices lower than
costs. This article increases the penalty level on monopoly. If
the operator engages in a monopoly, it will impose a fine
Any of the following shall not be deemed as unfair equal to five times its illegal business revenue. If there is
competition acts: no illegal business revenue or it is uncountable, the fine
will be 100,000 yuan to 3,000,000 yuan.
(1) to sell fresh or live commodities;
(2) to dispose of commodities nearly before their (2) Article 22 of the current law reads: “Operator
expiration or the other overstocked commodities; who bribe by giving money or properties or using any
(3) seasonal sales; or other method in order to sell or purchase commodities
(4) to sell commodities at lowered prices for paying and violate the Criminal Law, shall be investigated
off debts, changing the line of production or suspending in accordance with the Criminal Law; if the acts as
business.”
126
