Originally from:
International Consumer Protection - 2nd Edition - Looseleaf
International Consumer Protection - 2nd Edition - Electronic
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People's Republic of China
Will Shen
KoGuan Law School
Shanghai, China
Introduction
Despite official consternation publicized in the Chinese media and considerable efforts
since the early 1980s at launching a consumer rights protection drive, many industry play-
ers, both domestic and foreign, continue to manufacture products and provide services far
short of acceptable standards. In recent years, product quality and liability have become
the primary targets of consumer complaints and civil judgments.1
The Chinese press is replete with examples of dissatisfied customers who have purchased
faulty manufactured goods, especially consumer durables such as refrigerators, television
sets and automobiles. There have also been numerous reported cases of injury, and even
death, linked to certain goods such as pharmaceuticals, food and drink products.
For more than two decades, the Chinese Government has made great efforts to create a
legal environment more favorable to consumers, promulgating an array of legislation,
including new administrative measures for licensing, standardization and supervision of
a wide range of industrial products and services. Some measures were typical of a cen-
trally planned socialist economy and sought to set and maintain product standards by
administrative means.
For instance, some laws offered rewards for success in meeting the standards and threat-
ened punishments for non-compliance. Nevertheless, they did not necessarily deter
manufacturers from producing poor quality goods.
State economic management readjusted its traditionally vertical orientation with new
laws to make manufacturers, retailers, transporters, agents and even quality inspection
authorities directly liable to consumers (and/or end-users) in relation to products falling
short of the requisite standards. It also provided for civil, administrative and criminal liabil-
ity and the first impetus for consumers to seek compensation for defective products and
unsatisfactory services.
AsChina is experiencing rapid economic development and theChinesemarket for consumer
and industrial products is quickly expanding, the number of consumer protection and product
People's Republic of China
Introduction
Administrative and Public Law Structure
Administrative Bodies and Consumer Protection Organizations
Consumer Product and Service Standards
General Regimes
Special Regimes
Testing, Inspection, and Certification
In General
Testing
Inspection
Certification
Foreign Labeling, Registration, and Reporting Rules
Advertising Claims
Advertising Regulatory Regime
Legal Liability under the Advertising Law
Advertising Claims
Online Advertising and Consumer Protection
Foreign Advertising Rules
Standard Contracts (Adhesive Contracts)
In General
General Rules Relating to Standard Contracts
The Contract Law
Local Regulations on Standard Contracts
Repair, Replacement, and Refund
Pricing Policy and Controls
In General
Pricing Law and Pricing Control
Unfair Pricing Practices and Competition Law
Monopoly Pricing and the Suppressive Regime
Competition Law and Lack of “Level Playing Field”
World Trade Organization and Competition Law
Implementing Consumers’ Rights
System of Obligations under General Principles of Civil Law
Strict Liability under the Product Quality Law
Procedural Issues
Will Shen, KoGuan Law School, Shanghai, China