Laws of the People's Republic of China

State Council

Provisions on the Administrative Punishment against Price Violation Act (revised in 2006)

State Council Order [2006] No.461

February 21,2006

(Approved by the State Council on July 10, 1999, promulgated by the State Development and Planning Commission on August 1, 1999, amended in accordance with the Decision of the State Council on Revision of Provisions on Administrative Punishment against Price Violation Act on February 21, 2006)

Article 1

The present Provisions are formulated according to the relevant provisions of the Price Law of the People's Republic of China (hereinafter referred to as The Price Law) for the purpose of punishing price violation act in accordance with law and protecting the lawful rights and interests of consumers and business operators.

Article 2

The competent departments of price of the people's governments at or above the county level shall make supervision and examination on price-related activities in accordance with law and make determinations of the administrative punishment on price violation act.

Article 3

The administrative punishment on any price violation act shall be determined by the competent department of price of the local people's government at the place where such price violation act taken place; if the determination shall be made by its h higher level competent department of price as prescribed by the competent department of price of the State Council, the present provisions shall be complied.

Article 4

If any business operator acts against the provisions as prescribed in Article 14 of the Price Law, and meets any of the following acts, he/it shall be ordered to correct, with a confiscation of the illegal gains, and be fined not more than 5 times of the illegal gains at the same time; if there is no illegal gains, he/it shall be given a warning, and be fined 30,000 up to 300,000 Yuan at the same time; if the circumstances are serious, he/it shall be ordered to stop his/its business operations for rectification, or his/its business license shall be revoked by the administrative department of industry and commerce:

1.

Causing great detriment to the lawful rights and interests of other business operators or consumers by colluding with each other to manipulate market prices;

2.

Engaging in the dumping of goods (except the cases of legally selling perishable and live merchandises, seasonal merchandises, stockpiled merchandises or other similar merchandises at discount in accordance with law) at below-cost prices for the purpose of supplanting his/its rivals or monopolizing the market, which has disturbed the normal order of production and operation, and caused great detriment to the interests of the State or the lawful rights and interests of other business operators; or

3.

Carrying out price discrimination against the merchandises or services of a same kind offered by other business operators in the same trading conditions.

Article 5

If any business operator violates the provisions as prescribed in Article 14 of the Price Law, fabricates and spreads information on price rising so as to push up the prices to an excessively high level, or resorts to deceitful or misleading price means for the purpose of enticing consumers or other business operators into his/its trading, he/it shall be ordered to correct and given a confiscation of illegal gains, if any, and may be fined not more than 5 times of the illegal gains at the same time; if there is no illegal gains, he/it shall be given a warning, and may be fined not less than 20,000 Yuan and not more than 200,000 Yuan at the same time; if circumstances are serious, he/it shall be ordered to stop his/its business operations for rectification, or his/its business license shall be revoked by the administrative department of industry and commerce.

Article 6

If any business operator violates the provisions as prescribed in Article 14 of the Price Law, sells or purchases merchandises or provides services by artificially raising or lowering the grades of merchandises or services, or raises or lowers the prices thereof in any disguised form, he/it shall be ordered to correct, with his/its illegal gains, if any, being confiscated, and may be fined not more than 5 times of the illegal gains at the same time; if there is no illegal gains, he/it shall be given a warning, and be fined not less than10,000 Yuan and not more than 100,000 Yuan at the same time; if circumstances are serious, he/it shall be ordered to stop his/its business operations for rectification, or his/its business license shall be revoked by the administrative department of industry and commerce.

Article 7

If any business operator fails to carry out government-guided prices or government-set prices, and meets any of the following acts, he/it shall be ordered to correct, with the illegal gains, if any, being confiscated, and may be fined not more than 5 times of the illegal gains at the same time; if there is no illegal gains, he/it may be fined not less than 20,000 Yuan and not more than 200,000 Yuan; if circumstances are serious, he/it shall be ordered to stop business operation for rectification:

1.

Setting prices by exceeding the floating range of government-guided prices;

2.

Setting prices higher or lower than the government-set prices;

3.

Setting prices for the merchandises or services that belongs to the scope of government-guided prices or government-set prices without permission;

4.

Implementing government-guided prices or government-set prices in advance or on the shelf;

5.

Setting up charging items by himself/itself or setting standards of charges by himself/itself;

6.

Raising charging standards in any disguised form by means of dividing a charging item into several parts, repeated charging, or expanding the charging scope, and etc.;

7.

Keeping on charging on the charging items that have been rescinded by the government through explicit terms;

8.

Charging fees in disguised form by means of deposit and recognizance in violation of regulations;

9.

Charging fees by forcing any other person to accept his/its service directly or in any disguised form;

10.

Charging fees without providing services in accordance with relevant provisions; or

11.

Other acts of failing to carry out government-guided prices or government-set prices.

Article 8

If any business operator fails to carry out legal price intervention measures or emergency measures, and meets any of the following acts, he/it shall be ordered to correct, with the illegal gains, if any, being confiscated, and be fined not more than 5 times of the illegal gains at the same time; if there is no illegal gains, he/it shall be fined not less than 40,000 Yuan and not more than 400,000 Yuan; if circumstances are serious, he/it shall be ordered to stop his/its business operations for rectification:

1.

Failing to carry out the system of declaration on price rises and archival filing for price adjustment;

2.

Exceeding the range of price disparity and profit rate as prescribed;

3.

Failing to carry out the ceiling prices or conservation prices as prescribed;

4.

Failing to carry out the measures for the purview of concentrated fixation of prices;

5.

Failing to carry out measures for freezing prices; or

6.

Other acts of failing to carry out the legal price intervention measures and emergency measures.

Article 9

If the business operator as prescribed from Article 4 to Article 8 of the present Provisions is an individual, he shall be given a fine not more than 50,000 Yuan for his price violation act without illegal gains.

Article 10

If any business operator violate the provision of any law or regulation for seeking the exorbitant profits, he/it shall be ordered to correct, with his/its illegal gains being confiscated, and may be fined not more than 5 times of the illegal gains at the same time; if circumstances are serious, he/it shall be ordered to stop his/its business operations for rectification, or his/its business license shall be revoked by the administrative department of industry and commerce.

Article 11

If any business operator acts against the provisions about clear marked prices, and meets any of the following acts, he/it shall be ordered to correct, with a confiscation of his/its illegal gains, and may be fined not more than 5000 Yuan concurrently:

1.

Failing to mark the prices clearly;

2.

Failing to mark the prices clearly in accordance with the contents and ways as prescribed;

3.

Selling merchandises at prices above the marked prices or charging fees not specified; or

4.

Other acts in violation of the provisions on price marking.

Article 12

If any business operator refuses to submit the materials required by the price supervision and inspection or submit any false materials, he/it shall be ordered to correct, and be given a warning; if he/it fails to correct in excess of the time limit, he/it may be fined not more than 50,000 Yuan, and the person in charge who is directly responsible and other directly liable personnel shall be given a disciplinary punishment.

Article 13

If any competent department of price of the government implements supervision and examination on prices and finds that the illegal acts of a business operator meet the following three circumstances simultaneously, it may order him/it to pause the relevant business according to the provisions of item (3) of Article 34 of the Price Law:

1.

The circumstances of the illegal act are complicated or serious, and a heavier punishment may be given after such act is ascertained;

2.

The illegal act will continue if the relevant business is not suspended; or

3.

If the relevant business is not suspended, the determination on the illegal facts may be affected and it cannot be sufficiently ensured by taking other measures.

When the competent department of price of the government implements price supervision and inspection, there shall be no less than two law enforcement personnel, and whose certificates shall be showed to the business operator or the relevant personnel.

Article 14

If the illegal gains as prescribed in Articles 4 through 11 of the present Provisions belong to those overpaid by any consumer or other business operator as prescribed in Article 41 of the Price Law, the business operator shall be ordered to return the overpaid money in a time limit. If it is difficult to find out the consumer or other business operator who has overpaid the price, the business operator shall be ordered to find him/it out by public notice.

If any business operator refuses to return the overpaid money to any consumer or other business operator in accordance with the preceding paragraph, or fails to return the overpaid money to the consumer or other business operator within the prescribed time limit, the competent department of price of the government shall confiscate the overpaid money; if the consumer or other business operator requests it to return the said money, the business operator shall bear civil liabilities in accordance with law.

Article 15

If any business operator meets the circumstances as listed in Article 27 of the Administrative Punishment Law, he/it shall be given a lighter punishment in accordance with law or a mitigated punishment.

If any business operator meets any of the circumstances as follows, he/it shall be given a heavier punishment:

1.

His/its price violation acts are serious or have great impact on society;

2.

He/it is found to have violation acts whenever he/it is inspected;

3.

He/it fabricates, alters or transfers, or destroys any evidence;

4.

He/it transfers capital or merchandise related to price violation acts;

5.

The business operator refuses to return the overpaid money to any consumer or other business operator in the light of the provisions of Paragraph one of Article 14 of the present Provisions; or

6.

Other price violation acts that shall be given a heavier punishment.

Article 16

If any business operator is not satisfied with the punishment made by the competent department of price of the government, he/it shall submit an application for administrative reconsideration in accordance with law at first; if he/it is not satisfied with the decision of administrative reconsideration, he/it may lodge a lawsuit to the people's court in accordance with law.

Article 17

If any business operator fails to pay the fine within the prescribed time limit, he/it shall be imposed an extra of 3% of the amount of the fine per day; if he/it fails to pay the illegal gains within the prescribed time limit, he/it shall be imposed an extra of 2бы of the amount of the illegal gains per day.

Article 18

If any entity or individual has any of the price violation acts as prescribed in the present Provisions and the circumstances are serious, but refuses to correct, the competent department of price of the government may, apart from giving it/him punishment in accordance with the present Provisions, make a public notice of its/his price violation act at its/his business places, till it/he has made a correction.

Article 19

If any price law enforcement personnel reveals any state secret or business secret of any business operator, or abuses his power, or neglects his duty, or misconduct for self-seeking, , he shall be subject to criminal liabilities in accordance with law if a crime is constituted; if circumstances are not serious enough to constitute a crime, he shall be given administrative punishment in accordance with law.

Article 20

The present Provisions shall come into force as of the date of promulgation.