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PROTECTION OF CONSUMER RIGHTS AND INTERESTS

Category  PROTECTION OF CITIZENS' RIGHTS AND INTERESTS Organ of Promulgation  The Standing Committee of the National People's Congress Status of Effect  In Force
Date of Promulgation  1993-10-31 Effective Date  1994-01-01  

Law of the People's Republic of China on the Protection of Consumer Rights and Interests



Contents
Chaper I  General Provisions
Chapter II  Rights of Consumers
Chapter III  Obligations of Businees Operators
Chapter IV  Protection of the Legitimate Rights and Interests of        
Chapter V  Consumer Organizations
Chapter VI  Settlement of Disputes
Chapter VII  Legal Responsibility
Chapter VIII  Supplementary Provisions

(Adopted at the Fourth Meeting of the Standing Committtee

of the Eighth National People's Congress on October 31, 1993,
promulgated by Order No.11 of the President of the People's
Republic of China, and effective as of January 1, 1994)
Contents

    Chapter I     General Provisions

    Chapter II    Rights of Consumers

    Chapter III   Obligations of Bussiness Operators

    ChapterIV     Protection of Legitimate Rights and Interests of      

                  Consumers by the State

    Chapter V     Consumer Organizations

    Chapter VI    Settlement of Disputes

    Chapter VII   Legal Responsibility

    Chapter VIII  Supplementary Provisions
Chaper I  General Provisions

    Article 1  The present Law is formulated for the protection of the legitimate rights and interests of consumers, maintenance of the socio-economic order and promotion of the healthy development
of socialist market economy.

    Article 2  The rights and interests of consumers in purchasing
and using commodities or receiving services for daily consumption
shall be under the protection of the present Law, or under the
protection of  other relevant laws and regulations in absence of stipulations in this Law.

    Article 3  Business operators shall, in their supply of commodities produced and sold by them or services to consumers,
abide by the present Law, or abide by other relevant laws and
regulations in absence of stipulations in the present law.

    Article 4  In transactions between business operators and
consumers a principle of voluntariness, equality, fairness, honesty
and credibility shall be followed.

    Article 5  The State shall protect the legitimate rights and
interests of consumers from infringement.

    The State shall adopt measures to safeguard consumers'
exercise of their rights in accordance with the law and to maintain
the legitimate rights and interests of consumers.

    Article 6  It is the common responsibility of the whole society
to protect the legitimate rights and interests of consumers.

    The State shall encourage and support all organizations and
individuals to exercise social supervision over acts infringing
upon consumer rights and interests.

    Mass media shall conduct propaganda defending the legitimate
rights and interests of consumers and, through public opinion,
exercise supervision over acts infringing upon the legitimate
rights and interests of consumers.
Chapter II  Rights of Consumers

    Article 7  Consumers shall, in their purchasing and using
commodities or receiving services, enjoy the right of the
inviolability of their personal and property safety.

    Consumers shall have the right to demand business operators to
supply commodities and services up to the requirements of personal
and property safety.

    Article 8  Consumers shall enjoy the right to obtain true
information of the commodities they purchase and use or the
services they receive.

    Consumers shall have the right to demand business operators,
in light of the different conditions of commodities or services, to
provide their prices, origin, manufacturers, usage, functions,
standards, grades, main ingredients, date of production, term of validity, certificates of inspection, operation instructions,
aftersale services or information relating to contents, standards
and costs of the services.

    Article 9  Consumers shall enjoy the right of free choice of commodities or services.

    Consumers shall have the right to make a free choice of business operators for supply of commodities or services, select
freely among varieties of articles or forms of services and decide
independently to buy or not to buy any kind of commodities, or to
accept or not to accept any item of services.

    Consumers shall have the right to make comparisons,
differentiations and selections when they make a free choice of commodities or services.

    Article 10  Consumers shall enjoy the right of fair deal.

    Consumers shall, in their purchasing commodities or receiving
services, have the right to obtain fair deal prerequisites such as
guarantee of quality, reasonable prices and correct measurement,
and have the right to refuse any compulsory transaction of business
operators.

    Article 11  Consumers suffering from personal injury or
property damage resulting from their purchasing or using of commodities or receiving of services shall have the right to demand
compensations in accordance with the law.

    Article 12  Consumers shall have the right to form public
organizations for the maintenance of their own legitimate rights
and interests according to law.

    Article 13  Consumers shall have the right to acquire knowledge
concerning consumption and protection of consumer rights and
interests.

    Consumers shall make efforts to master the knowledge of their
necessary commodities or services and the skill in operation
thereof, apply the commodities in a correct way and raise their
consciousness of self-protection.

    Article 14  Consumers shall, in their purchasing and using
commodities or receiving services, have the right that their  human
dignity, national customs and habits are respected.

    Article 15  Consumers shall have the right to exercise
supervision over commodities, services as well as the work of protection of consumer rights and interests.

    Consumers shall have the right to inform and charge against
the infringement upon consumer rights and interests and the breach
of law or neglect of duty on the part of State organs and their
functionaries in the work of protection of consumer rights and
interests, and have the right to raise criticism of or proposals
for the work of protection of consumer rights and interests.
Chapter III  Obligations of Businees Operators

    Article 16  Business operators shall, in their supply of commodities and services to consumers, fulfill their obligations
stipulated in the Law of the People's Republic of China on Product
Quality and other laws and regulations concerned.

    In case an agreement is reached between business operators and
consumers, the business operators shall fulfill the obligations
agreed upon in the agreement; but the agreement between the two
parties shall not contravene the provisions of laws and
regulations.

    Article 17  Business operators shall listen to the consumers'
opinions  on the commodities and services they supply and accept
consumers' supervision.

    Article 18  Business operators shall guarantee that the
commodities and services they supply meet the requirements for
personal or property safety. As to commodities and services liable
to harm personal or property safety, business operators shall
give the consumers truthful explanation and clearout warnings, and
shall explain or indicate the correct ways of using the commodities
or receiving services as well as the methods of preventing damage.

    Business operators shall, upon discovery of serious defects of the commodities or services they supply which are liable to harm
personal or property safety even though the commodities are
correctly applied or services are received in a correct way,
immediately report to the administrative departments concerned and
inform the consumers, and adopt measures to prevent damage.

    Article 19  Business operators shall provide consumers with
authentic information concerning their commodities or services, and
may not make any false and misleading propaganda.

    Business operators shall give truthful and definite replies to
inquiries from consumers about the qualities of the commodities or
services they supply and the operation methods thereof.

    Shops shall mark clearly the prices of the commodities they
supply.

    Article 20  Business operators shall indicate their real names
and marks.

    Business operators who lease counters or grounds from others
shall indicate their own real names and marks.

    Article 21  Business operators who supply commodities or services
shall make out for consumers invoices for purchases or documents of
services in accordance with relevant regulations of the State or
commercial practices; business operators must produce such invoices or
documents in case consumers so demand.

    Article 22  Business operators shall guarantee the quality,
functions, usage and term of validity which the commodities or
services they supply should possess under normal operation or
acceptance, except that consumers are aware of the defects before
they buy the commodities or receive the services.

    Business operators who employ advertisements, product
instructions, samples or other ways to display the quality state of their commodities or services shall guarantee that the actual
quality of the commodities or services they supply is in conformity
with that demonstrated.

    Article 23  Business operators who are under the obligation of repair or caveat venditor, or other responsibilities in accordance
with regulations of the State or agreements with consumers shall
carry out such obligations correspondingly according to such
regulations or agreements, and may not delay deliberately or refuse
unreasonably to do so.

    Article 24  Business operators may not, through format
contracts, notices, announcements, entrance hall bulletins and so
on, impose unfair or unreasonable rules on consumers or reduce or
escape their civil liability for their infringement of the
legitimate rights and interests of consumers.

    Format contracts, notices, announcements, entrance hall
bulletins and so on with contents mentioned in the preceding
paragraph shall be invalid.

    Article 25  Business operators may not insult or slander
consumers, may not search the body of consumers or the articles
they carry with them, and may not violate the personal freedom of consumers.
Chapter IV  Protection of the Legitimate Rights and Interests of        
Consumers by the State

    Article 26  The State shall heed to the opinions and demands
from consumers when making laws, regulations and policies
concerning consumer rights and interests.

    Article 27  People's governments at various levels shall
strengthen their leadership, and organize, coordinate and supervise
the administrative departments concerned to do their work well in
the protection of the legitimate rights and interests of consumers.

    People's governments at various levels shall strengthen
supervision to prevent occurrence of acts damaging to the personal
or property safety of consumers and promptly check any such acts.

    Article 28  Departments for industry and commerce of people's
governments at various levels and other administrative departments
concerned shall adopt measures to protect the legitimate rights and
interests of consumers within the scope of their respective
functions and duties in accordance with the provisions of the laws
and regulations.

    Administrative departments concerned shall listen to the
complaints of consumers and their public organizations as to the
transactions of business operators and the quality of their
commodities and services, and carry out timely investigation and
disposition.

    Article 29  State organs concerned shall, in accordance with
the provisions of laws and regulations, punish any law-breaking or
criminial activities of business operators infringing upon the
legitimate rights and interests of consumers in their supplying
commodities or services.

    Article 30  The people's courts shall adopt measures to
facilitate consumers to take legal proceedings and must entertain
and handle without delay cases of disputes over consumer rights and
interests that meet the conditions for a lawsuit specified in the
Civil Procedure Law of the People's Republic of China.
Chapter V  Consumer Organizations

    Article 31  Consumer associations and other consumer
organizations are public organizations formed according to law to
exercise social supervision over commodities and services and to
protect the legitimate rights and interests of consumers.

    Article 32  Consumer associations shall perform the following
functions:

    (1) to afford consumption information and consultative
services to consumers;

    (2) to participate in supervision over or inspection of commodities and services conducted by relevant administrative
departments;

    (3) to make reports, inquiries and suggestions to relevant
administrative departments about issues relating to the legitimate
rights and interests of consumers;

    (4) to accept and hear complaints of consumers and offer
investigations and mediations with respect to points of complaints;

    (5) in case quality of commodities or services is involved,
to submit for appraisement the points of complaints to appraisal
departments which shall inform them of the expert conclusions;

    (6) to render support to victims in their legal proceedings
against infringement upon the rights and interests of consumers;

    (7) to expose and criticize through mass media the acts
infringing upon the legitimate rights and interests of consumers.

    People's governments at various levels shall give support to
consumer associations in the performance of their functions.

    Article 33  Consumer organizations may not be engaged in
commodity transactions or profit-making services, and may not
recommend to the society commodities or services for the purpose of making profits.
Chapter VI  Settlement of Disputes

    Article 34  In case of disputes with business operators over
consumer rights and interests, consumers may settle the disputes
through the following approaches:

    (1) to consult and conciliate with business operators;

    (2) to request to consumer associations for mediation;

    (3) to appeal to relevant administrative departments;

    (4) to apply to arbitral organs for arbitration according to
the arbitral agreements with business operators;

    (5) to institute legal proceedings in the people's court.

    Article 35  Consumers whose legitimate rights and interests are
infinged upon in their purchasing or using commodities may demand
compensation from the sellers concerned. In case the liability is
on the manufacturers or other sellers who supply the commodities to
the said sellers, the said sellers shall, after paying the
compensations, have the right to recover the compensations from the
manufacturers or the other sellers.

    Consumers or other victims suffering personal injuries or
property damage resulting from defects of commodities may demand
compensations either from the sellers or from the manufacturers. If
the liability is on the manufacturers, the sellers shall, after
paying the compensations, have the right to recover the
compensations from the manufacturers; if the liability is on the
sellers, the manufacturers shall, after paying the compensations,
have the right to recover the compensations from the sellers.  

    Consumers whose legitimate rights and interests are infringed
upon in receiving services may demand compensations from suppliers
of the services.

    Article 36  Consumers whose legitimate rights and interests are
infringed upon in purchusing or using commodities or receiving
services may, if the enterprises supplying the commodities or
services have been split-up or merged, demand compensations from
the enterprises succeeding to the rights and obligations of the
original ones after the modifications.

    Article 37  In case a business operator unlawfully uses
another's business license to supply commodities or services and
infringes upon the legitimate rights and interests of consumers,
the consumers may demand compensations either from such business
operator or from the holder of the business licence.

    Article 38  Consumers whose legitimate rights and interests are
infringed upon in purchasing commodities or receiving services at
trade fairs or leased counters may demand compensations from the
sellers or suppliers of the services. In case the fairs are over or
the lease of counters expires, they may also demand compensations
from organizers of the fairs or lessors of the counters.
Organizers of the fairs and lessors of the counters shall, after
paying the compensations, have the right to recover the
compersations from the sellers or suppliers of the services.

    Article 39  Consumers whose legitimate rights and interests are
infringed upon on account of commodities or services supplied by
business operators by means of false advertisement may demand
compensations from the business operators. Consumers may demand
the competent administrative departments to punish the advertising
agents who make false advertisements. Advertising agents who cannot
provide the real names and addresses of the business operators
shall bear the responsibility for compensations.
Chapter VII  Legal Responsibility

    Article 40  Business operators shall, if the commodities and
services they supply involve any of the following circumstances,
bear civil liability in accordance with the provisions of the Law
of the People's Republic of China on Product Quality and other
relevant laws and regulations, except as otherwise provided in the
present Law:

    (1) there existing defects in the commodities;

    (2) not possessing the properties for use they should possess
and no declaration thereabout is made at the time of sale;

    (3) not conforming to the standards indicated on the
commodities or on the packaging thereof;

    (4) not conforming to the quality indicated by the product
description or by physical samples;

    (5) producing commodities that have been formally declared by
the State to be sbsolete or selling commodities that are no longer
effective or deteriorated;

    (6) commodities sold being short of weight or quantity;

    (7) contents and costs of services being not in conformity
with the agreements;

    (8) deliberately delaying or unreasonably refusing consumers'
requests for repair, remanufacture, replacement, return of goods,
makeup for the short commodity, return of payment for goods or
services, or compensation for losses;

    (9) other circumstances infringing upon consumer rights and
interests as specified by laws and regulations.

    Article 41  Business operators shall, if the commodities or
services they supply have caused personal injuries to consumers or
other victims, pay for the victims'medical expenses, nursing
expenses during medical treatment, the reduced income for loss of working time and other expenses. And business operators shall, if
the commodities or services they supply have disabled the
consumers, also pay for the victims' expenses on self-help devices,
living allowances, compensations for disability and the necessary
living cost of the persons supported by the disabled. Business
operators shall, if the case constitutes a crime, be investigated
for criminal responsibility according to law.

    Article 42  Business operators shall, if the commodities or
services they supply have caused death of consumers or other
victims, pay for the victims' funeral expenses, compensations for
death and the necessary living cost of the persons supported by the
deceased during their lifetime. Business operators shall, if the
case constitutes a crime, be investigated for criminal
responsibility according to law.

    Article 43  Business operators who violate the provisions of Article 25 of the present Law and violate the human dignity or
personal freedom of consumers shall stop the violations, restore
consumers' reputation, dliminate the bad effects, make apologies,
and make compensations therefor.

    Article 44  Business operators shall, if the commodities or
services they supply have caused damage to the properties of consumers, bear civil liabilities  by repair, remanufacture,
replacement, return of goods, make-up for the short commodity,
return of payment for goods and services, or compensation for
losses and so on as demanded by consumers. If consumers and
business operators have otherwise agreed upon, such agreements
shall be fulfilled.

    Article 45  Business operators shall be responsible for repair,
replacement or return of goods, if repair, replacement or return of goods is guaranteed by provisions of the State or agreed upon
between business operators and consumers. Business operators shall
be responsible for replacement or return of goods if the
commodities still malfunction after being repaired twice within the
term of guaranteed repair.

    As to large-sized commodities guaranteed for repair,
replacement or return, business operators shall bear the
reasonable costs such as expenses for carriage if consumers demand
repair, replacement or return.

    Article 46  Business operators who supply commodities by
mail-order shall provide their commodities according to the
agreements. Business operators who fail to provide their
commodities according to the agreements shall fulfil the agreements
or return the consumers' payment for the commodities on the demand
of the consumers, and bear the reasonable expenses that the
consumers must bear.

    Article 47  Business operators who supply commodities or
services in the form of advance payment shall provide their
commodities or services according to the agreements. Business
operators who fail to provide their commodities or services
according to the agreements shall fulfil the agreements or return
the advance payment on the demand of the consumers, and shall also
bear the interests of the advance payment and other necessary
expenses that the consumers must bear.

    Article 48  Business operators shall, on the demand of the
consumers, be responsible for return of goods determined to be
substandard commodities by administrative departments concerned
according to law.

    Article 49  Business operators engaged in fraudulent activities
in supplying commodities or services shall, on the demand of the
consumers, increase the compensations for victims' losses; the
increased amount of the compensations shall be two times the costs
that the consumers paid for the commodities purchased or services
received.

    Article 50  If business operators are under any of the
following circumstances and the Law of the People's Republic of China on Product Quality and other laws and regulations have
provided for punitive organs and forms therefor, the provisions of the laws or regulations shall be applied; in absence of such
provisions in the laws or regulations, administrative departments
for industry and commerce shall order them to make corrections, and
may, in light of the circumstances, punish the offenders
exclusively or concurrently the offenders with warning,
confiscation of unlawful earings, or imposition of a fine no less
than one time but not more than five times the value of the
unlawful earnings; in case there involves no unlawful earnings, the
offenders shall be punished with a fine of 10,000 Yuan or less, and
if the circumstances are serious, they shall be ordered to suspend
business for rectification, and their business licences shall be
revoked:

    (1) producing or selling commodities failing to meet the
requirements for the protection of personal and property safety;

    (2) mixing adulterations into their commodities, or passing
fake commodities off as genuine ones, or passing defective
commodities off as good ones, or passing substandard commodities
off as standard ones;

    (3) producing commodities which have been formally declared by
the State to be obsolete, or selling commodities no longer
effective or deteriorated;

    (4) forging the origin of commodities, forging or
counterfeiting the names and addresses of other factories, and
forging or counterfeiting the anthentication marks or
famous-and-excellent-product marks;

    (5) selling commodities not inspected or quarantined against
the requirement therefore, or forging the result of inspection or
quarantine;

    (6) making false or misleading propaganda about their
commodities or services;

    (7) deliberately delaying or unreasonably refusing consumers'
demand for repair, remanufacture, replacement, return of goods,
make-up for the short commodity, refundment of payment for goods
or services, or compensations for losses;

    (8) violating human dignity or personal freedom of consumers;

    (9) other circumstances wherein punishment shall be given for
infringement of consumer rights and interests as stipulated by laws
or regulation..

    Article 51  Any business operator who is not satisfied with the
decision on punishment may apply to the organ at the next higher
level for reconsideration within 15 days from the date of receipt
of the decision; and he who is still not satisfied with the
reconsideration decision may bring a lawsuit in the people's court
within 15 days from the date of receipt of the reconsideration
decision; or he may take legal proceedings directly in the people's
court.

    Article 52  Anyone who, by means of violence or threats,
hinders functionaries of the administrative departments concerned
from performing their duties according to law, shall be
investigated for criminal responsibility according to law; and
those who refuse or hinder functionaries of the administrative
departments concerned from performing their duties according to
law, without resorting to violence or threats, shall be punished by
public security organs in accordance with the stipulations of the
Regulations of the People's Republic of China on the Administrative
Penalties for Public Security.

    Article 53  Any functionary of the State organs, who neglects
his duties or shields any business operator guilty of infringement
of the legitimate rights and interests of consumers, shall be given
administrative sanctions by the unit he belongs to, or by an organ
at a higher level; if the circumstances are serious enough to
constitute a crime, he shall be investigated for criminal
responsibility according to law.
Chapter VIII  Supplementary Provisions

    Article 54  The present Law shall be applicable mutatis
mutandis to peasants' purchase or application of means of production used directly in agricultural production.

    Article 55  The present Law shall enter into force as of January 1, 1994.



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