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Rules of Shenzhen
Special Economic Zone on Implementing the Law of the People' s
Republic of China
on Anti-Unfair Competition
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(Originally
adopted at the Twenty-sixth Meeting of the Standing Committee of
the First Shenzhen
Municipal People' s Congress on November
2,1994, as revised in accordance with the Decision on
Revision of Articles 15 and 18 of Rules of Shenzhen Special
Economic Zone on Implementing
the Law of the People' s Republic
of China on Anti-Unfair Competition of the Nineteenth
Meeting of the Standing Committee of the Second Shenzhen
Municipal People' s
Congress on December 17,1997.) |
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Article
1 In order to maintain the market
order of Shenzhen Special Economic Zone (hereinafter referred to
as Special Zone), encourage and protect fair competition,
prohibit the behaviors of unfair competition, protect
the lawful
rights and interests of the operators and consumers, and ensure
the healthy development
of the socialist market economy, these
rules are formulated according to the basic principles of the
Law of the People' s Republic of China on Anti-unfair
Competition (hereinafter referred to as the law of anti-unfair
competition), and in accordance with the actual circumstances of
Special Zone. |
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Article
2 The operators engaging in
operation in Special Zone must observe the law of anti-unfair
competition
and these rules. |
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Article
3 The people' s government at all
levels of Shenzhen Municipality shall take measures to
strengthen
the administration of the market, prohibit the
behaviors of unfair competition, and create perfect
circumstances and conditions for the establishment of the
mechanism of fair competition. |
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The
administrative department of industry and commerce of Shenzhen
Municipal People' s Government
(hereinafter referred to as the
municipal government) is the department for supervising and
inspecting
the unfair competition in Special Zone (hereinafter
referred to as the department of supervision and inspection);
If
the laws and regulations stipulate that the unfair competition
shall be supervised and inspected
by other departments, such
laws and regulations shall be observed. |
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The
other administrative departments of the municipal government
shall support and cooperate the
department of supervision and
inspection to perform the functions of supervision and
inspection
according to law within the scope of their respective
functions and powers. |
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Article
4 It is encouraged, supported and
protected that all the organizations and individuals supervise
the behaviors of unfair competition. All the organizations and
individuals have rights to report the behaviors of
unfair
competition to the department of supervision and inspection. The
department of supervision
and inspection shall keep confidential
for the reporters, as well as honor and reward the persons
meritorious to the reports. |
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The
concrete measures and standards of honor and reward shall be
stipulated separately by the department
of supervision and
inspection. |
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Article
5 The operators shall not take the
following unfair means in their operation: |
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(1)
unilaterally propagating their commodities to belittle the
commodities of other operators and
mislead the consumers to
purchase; |
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(2)
impersonating other' s name in the selling operation by means
of leasing others' special counters,
grounds or equipments and
so on; |
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Article
6 For the goods that have not
acquired the patent, the operators shall not use "patent" or
other
words, languages or numbers which means they have acquired
the patent right on them or in the advertisement relevant
to
them with the aim to make misleading fictitious denotation. |
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Article
7 The public service enterprises
or other monopolistic operators according to law shall not have
the following behaviors to restrict competition: |
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(1)
to restrict that the purchasers may only purchase and use
relevant commodities provided by the
operators
incidentally or other operators they appoint; |
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(2)
to force the purchasers to purchase the unnecessary commodities
and accessories provided by
the operators or other operators
they appoint; |
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(3)
to create difficulties for the purchasers who boycott the
behaviors of restricting competition
by refusing, suspending and
cutting down the supply of relevant commodities or collecting
fees
recklessly; |
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(4)
other behaviors restricting competition. |
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Article
8 The institutions with
administrative functions shall not abuse their powers to
restrict others
to purchase the commodities provided by the
operators they appoint with the aim to squeeze other operators
out. |
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Article
9 The operators shall not take the
measures of on-site demonstration, literal identification, news
media and so on to make misleading false propaganda on the
commodities' prices, names, qualities, specifications,
manufacturing measures, etc. |
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Article
10 The operators shall not have
the following behaviors of unfair competition with the aim to
squeeze
the competitive opponent out: |
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(1)
to illicitly impede others to set up normal trade relations with
the competitive opponents or
to illicitly compel others to sever
the normal trade relations with the competitive opponents; |
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(2)
to obstruct the normal work of the competitive opponents'
operators and managers, technician
and other personnel, or to
disturb and hinder the normal operation of the competitive
opponents. |
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Article
11 The operators shall not take
coercive, deceptive or other illicit measures to impair or
deprive
of the competitive competence of the competitive
opponents or to impel them to withdraw or give up normal
competition. |
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Article
12 When the department of
supervision and inspection supervises and inspects the behaviors
of unfair
competition, it has rights to exercise the following
functions and powers: |
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(1)
to exercise the functions and powers stipulated in Article 17 of
the law of anti-unfair competition; |
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(2)
to inspect the properties relevant to the behavior of unfair
competition. If it is necessary,
with an approval of the chief
administrative officers of the district or superior departments
of
supervision and inspection, the law enforcement personnel may
take the administrative coercive measures of sealing
up,
detainment, suspension of payment and so on to the properties
according to the stipulated procedures,
and make settlements
within the stipulated periods; |
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(3)
to periodically proclaim the operators who have serious
behaviors of unfair competition, the
main facts of their
behaviors of unfair competition and other matters that need to
be proclaimed
to the society. |
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Article
13 When the working staff of the
department of supervision and inspection supervises and inspects
the behaviors of unfair competition, they shall show the
credentials of inspection. If they do not show the certificate
of inspection, the inspected operators have rights to refuse the
inspection. |
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Article
14 If the operators violate these
rules and cause damages to the infringed operators, they shall
bear
the responsibilities of compensation for damages. If the
losses of the infringed operators are difficult to calculate,
the amount of compensation is the profits that the infringers
have made from the infringement during
the infringement periods.
The infringers shall also bear the reasonable costs that the
infringed
operators have paid to investigate the infringers'
behaviors of unfair competition that infringe their lawful
rights and interests. |
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If
the lawful rights and interests of the infringed operators are
damaged by the behaviors of unfair
competition, the operators
may complain to the department of supervision and inspection or
file
lawsuits to the people' s court. |
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If
the credit of the infringed operators is damaged by the
behaviors of unfair competition of the
infringers, the infringed
operators may apply to the people' s courts for taking
necessary measures
to rehabilitate their reputation. |
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Article
15 If the operators violate these
rules and have one of the following behaviors, the department of
supervision and inspection shall order them to stop the illegal
behaviors and eliminate effects, confiscate the
illegal gains
and goods, and impose a fine one time of the illegal volume of
business: |
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(1)
violating the provisions of the second subparagraph of Article 5
of these rules; |
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(2)
violating the provisions of Article 6 of these rules; |
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(3)
violating the provisions of Article 8 of these rules; |
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(4)
violating the provisions of Article 10 of these rules; |
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(5)
violating the provisions of Article 11 of these rules. |
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Article
16 If the operators violate these
rules and have one of the following behaviors, the department of
supervision and inspection shall order them to stop the illegal
behaviors, confiscate the illegal gains, and may
impose a fine
more than 50,000 yuan but less than 200,000 yuan according to
the circumstances: |
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(1)
violating the provisions of Article 7 of these rules; |
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(2)
violating the provisions of Article 9 of these rules. |
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Article
17 If the operator violate the
provisions of the first subparagraph of Article 5 of these
rules, the
department of supervision and inspection shall order
them to stop the illegal behaviors and eliminate effects, and
may impose a fine more than 10,000 yuan but less than 100,000
yuan according to the circumstances. |
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Article
18 If the advertising operators
violate the provisions of Article 9 of the law of anti-unfair
competition
to act as agent, design, produce and issue the false
advertisements in the circumstances of knowing or having reasons
to know, the department of supervision and inspection shall
order them to stop the illegal behaviors
and rectify them
publicly, confiscate the illegal gains, and may impose a fine
more than 10,000
yuan but less than 200,000 yuan according to
the circumstances; If the circumstances are serious, the
department of supervision and inspection may revoke the Permit
of Advertising Operation and the Business
License. |
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Article
19 If the operators violate the
provisions of Article 12 of the law of anti-fair competition to
engage
in tied sale or add other unreasonable conditions,
violating the purchasers' intents, the department of
supervision and inspection shall order them to stop the illegal
behaviors, and impose a fine one time
of the illegal volume of
business. |
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Article
20 If the operators violate these
rules and produce heavy influence to the society, in case the
circumstances
are serious enough to constitute crimes, the
judicial department shall prosecute their criminal
responsibilities according to law. |
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Article
21 If the operators have the
behaviors of unfair competition and cause damages to other
operators,
their legal representatives shall take the
corresponding responsibilities with the operators. |
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Article
22 If the parties are not
satisfied with the punishment decisions made by the district
department of
supervision and inspection, they may apply for
reconsideration to the municipal department of supervision and
inspection within 15 days from receipt of the punishment
decisions. |
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If
the parties are not satisfied with the punishment decisions made
by the municipal department
of supervision and inspection, they
may apply for reconsideration to the organization for
administrative
appeal of the municipal government within 15 days
from receipt of the punishment decision. |
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If
the parties are not satisfied with the decisions of appeal, they
may file lawsuits to the people'
s court within 15 days from
receipt of the decision of review. The parties may also file
lawsuits
directly to the people' s courts. |
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During
the periods of appeal and lawsuit, the enforcement of sealing
up, detainment, suspension
of payment and the penalty decision
shall not be suspended, except the laws and regulations have
special provisions. If the parties fail to apply for
reconsiderations or file lawsuits, and to implement the
punishment decisions within the time limit, the department of
supervision and inspection making
the punishment decisions shall
apply to the people' s court for coercive enforcement. |
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Article
23 When the department of
supervision and inspection supervises and inspects the illicit
behaviors,
it shall exercise the functions and powers according
to law; If it causes damages to the operators' lawful
properties because it abuses its powers, it shall take the
responsibilities of administrative compensation
according to
law. |
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Article
24 The limitation of actions to
the behaviors of unfair competition is 2 years, which is
calculated
from the date when the infringement terminates. |
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Article
25 These rules shall go into
effect as of January 1, 1995. |
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