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

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

Standing Committee of the National People's Congress

Order of the President of the PRC

No. 7

The Decision on Amending the PRC Law on the Protection of Consumer Rights and Interests was adopted at the 5th Session of the Standing Committee of the Twelfth National People's Congress on October 25, 2013, and is hereby released to take effect on 15th March, 2014.

President of the People's Republic of China Xi Jinping

October 25, 2013

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

(Adopted at the 4th meeting of the Standing Committee of the Eighth National People's Congress on October 31, 1993, and amended for the first time in accordance with the "Decision on Amending Some Laws" adopted at the 10th Meeting of the Standing Committee of the Eleventh National People's Congress on August 27, 2009; and amended for the second time in accordance with the "Decision on Amending the Law of the People's Republic of China on the Protection of Consumer Rights and Interests" adopted at the 5th Session of the Standing Committee of the Twelfth National People's Congress on October 25, 2013)

Table of Contents

Chapter I: General Provisions

Chapter II: Rights of Consumers

Chapter III: Obligations of Proprietors

Chapter IV: State Protections of Consumers' Lawful Rights and Interests

Chapter V: Consumer Organizations

Chapter VI: Settlement of Disputes

Chapter VII: Legal Responsibility

Chapter VIII: Supplementary Provisions

Chapter I: General Provisions

Article 1: This law is formulated to protect the lawful rights and interests of consumers, maintain social economic order, and promote the health development of the socialist market economy.

Article 2: This law protects the rights and interests of consumers purchasing or using goods or accepting services which the need; where this law does not make provisions, they are protected by other relevant laws and regulations.

Article 3: Proprietors producing or selling goods to provide to consumers, or providing services, shall obey this law; where this law does not have provisions, they shall follow other relevant laws and provisions.

Article 4: Proprietors conducting transactions with consumers should follow the principles of voluntariness, equality, fairness, honesty and credibility.

Article 5: The state protects the lawful rights and interests of consumers against infringement.

The State takes measures to protect consumers exercise their rights in accordance with law, and maintains the lawful rights and interests of consumers.

The State advocates civilized, healthy consumption which conserves resources and protects the environment, and opposes waste.

Article 6: Protecting the lawful rights and interests of consumers is the joint responsibility of the entire society.

The State encourages and supports all organizations and individuals conducting social supervision of conduct harmful to consumers' legal rights and interests.

The mass media shall do a good job of publicizing safeguards of the lawful rights and interests of consumers publicity, and supervise public opinion of conduct that damages the lawful rights and interests of consumers.

Chapter II: Rights of Consumers

Article 7: Consumers enjoy the right to not suffer injury to there person or property when purchasing or using goods or receiving services.

Consumers have the right to require that proprietors provide goods and services meeting the requirement of ensuring the safety of their person and property.

Article 8: Consumers enjoy the right to know the true circumstances of goods they purchase or use, or services they receive.

On the basis of the circumstances, consumers have the right to require proprietors to provide the prices, place of production, manufacturers, usage, performance, standards, grade, principle components, date of production, expiration period, certificates of inspection, instructions for use, and after-sales services for goods or services, and provide information on relevant conditions such as the content, standards and costs of services.

Article 9: Consumers enjoy the right to independently select goods or services.

Consumers have the right to independently choose between proprietors providing goods and services, independently choose the varieties of commodities or type of services, and independently decide whether or not to buy any goods or receive any services.

In independently choosing goods or services, consumers have the right to conduct comparisons, of comparison, identifications and specific selection..

Article 10: Consumers enjoy the right to fair transactions.

When purchasing goods or receiving services, consumers have the right to fair trade conditions such as assurances of quality, reasonable prices and correct measurements, and have the right to refuse coercive trading behavior by business operators.

Article 11: Where consumers suffer harm to their person or property from their purchase or use of goods or receipt of services, they enjoy the right to receive compensation in accordance with law.

Article 12: Consumers enjoy the right to form social organizations to protect their lawful rights and interests in accordance with the law.

Article 13: Consumers enjoy the right to gain knowledge regarding consumption and the protection of consumer rights and interests.

Consumers shall strive to understand the knowledge and skills for using the goods or services they require, correctly use goods, and raise their self-preservation consciousness..

Article 14: When purchasing or using goods or receiving services, consumers enjoy the right to personal dignity, the right to have their ethnic customs respected, and enjoy the right to have their personal information protected.

Article 15: Consumers enjoy the right to conduct oversight over goods, services, and the efforts to protect consumer rights and interests.

Consumers have the right to report and make accusations on conduct infringing upon consumer rights and interests, and illegal actions or failure to perform duties of state organs and their employees in the protection of consumer rights and interests, and have the right to make criticisms and recommendations regarding the protection of consumer rights and interests.

Chapter III: Obligations of Proprietors

Article 16: In providing goods or services to consumers, proprietors shall follow this Law and other applicable laws and regulations in fulfilling their obligations.

Where proprietors and and consumers have an agreement, they shall follow the agreement in fulfilling their obligations, except where the parties' agreement goes against provisions of laws and regulations.

Proprietors providing goods or services to consumers shall abide by social morality, conduct business in good faith, and protect the lawful rights and interests of consumers; they must neither set unfair or unreasonable trading conditions nor compel consumers into any transactions.

Article 17: Proprietors shall hear consumers' opinions on goods or services the provided, and accept consumers' supervision.

Article 18: Proprietors shall ensure that their provided goods or services meet the requirements for the safety of persons and property. For goods and services which may endanger the safety of persons or property, proprietors shall provide consumers with truthful explanations and clear warnings, and explain and indicating the correct methods for using goods or for receiving services as well as methods for preventing damage.

Proprietors in hotels, shopping centers, restaurants, banks, airports, stations, ports, theaters, and other such business premises shall fulfill their obligations to guarantee the safety of consumers as much as possible.

Article 19: Where proprietors discover defects which may endanger the safety of persons or property in their goods or services they provided, they shall immediately report this to the relevant administrative departments and inform consumers; and also take measures such as stopping sales, issuing warnings, making a recall, eliminating the harm, destroying (the goods), or stopping production or stopping service. If the a recall measure is taken, proprietors shall reimburse consumers for expenses necessarily incurred in the recall of goods.

Article 20: Proprietors shall provide consumers with true and complete information on traits such as the quality, performance, use, and duration of goods or services; and must not conduct any false or misleading publicity.

Proprietors shall provide truthful and clear answers to questions from consumers regarding the quality and usage of their goods or services they provided.

Proprietors shall clearly mark the prices of goods or services they provide.

Article 21: Proprietors shall clearly indicate their true names and labels.

Proprietors which lease counters or space from others shall clearly indicate their true names and labels.

Article 22: Proprietors providing goods or services shall issue invoices or other such proofs of purchase or service documents to consumers in accordance with the relevant national provisions or commercial practices; and where consumers request invoices or other such proofs of purchase or service documents, proprietors must issue them.

Article 23: Proprietors shall guarantee the quality, performance, use, and effective period for goods or services they provided in cirumcstances of their normal use or receipt, except where consumers knew of existing defects before purchasing the goods or receiving the services and the existence of the defects does not violate the mandatory legal provisions.

Proprietors who indicate the quality of goods or service by means such as advertising, product instructions or samples, shall guarantee that the actual quality of the goods or services they provide is consistent with the quality indicated.

Where proprietors provide durable goods such as motor vehicles, computers, televisions, refrigerators, air conditioners, or washing machines, or services such as redecoration and remodeling, and consumers discover defects within six months of receiving the goods or services causing a dispute, the proprietors bear the burden of proof regarding the defects.

Article 24: Where the goods or services provided by proprietors do not meet quality requirements, consumers may return them in accordance with national provisions or the parties' agreement, or request that proprietors fulfill obligations such as to make exchange or repairs. Where there are no national provisions of the state or party agreements, consumers may, within return goods within seven days of receiving them. Where after seven days the statutory requirements for rescission of the contract are met, consumers may promptly return the goods and where the conditions for rescission are not met, they may request proprietors to fulfill their obligations such as to make exchange or repairs.

In following the preceding paragraph to return goods, make exchanges or repairs, proprietors shall bear necessary expenses such as shipping.

Article 25: Where proprietors sell goods by means such as the Internet, television, telephone or by mail order, consumers have the right to return the goods within seven days of receipt and need not give a reason, except for the following goods;

(1) made-to-order good;

(2) perishables;

(3) Digitalized goods, such as audio-visual works or computer software, which are downloaded or opened by consumers.

(4) delivered newspapers and periodicals.

In addition to the goods listed in the preceding paragraph, return without cause shall not apply to goods unsuitable for return by their nature as confirmed by consumers at the time of purchase.

Goods returned by consumers shall be in good condition. Proprietors shall refund the consumers payment for goods within seven days of receiving returned goods. Shipping costs to return goods is borne by consumers; but where proprietors and consumers have agreed otherwise, the agreement is followed.

Article 26: Proprietors using standardized agreements in business activities shall, in a conspicuous manner, remind consumers to pay attention to the quality, quantity, the prices or costs of the goods or services, the duration and manner of performance, safety precautions and risk warnings, after-sales service, civil liability, and other information strongly tied to the interests of consumers, and provide explanations as requested by consumers.

Proprietors must not, use standard agreements, notices, declarations, on-site posters, or other means, to eliminate or restrict consumer rights, to reduce or avoid the responsibilities of proprietors, to increase the responsibilities of consumers, or to make other such unreasonable and unfair rules against consumers, and must not use standardized agreements or technical assistance measures to compel consumers into a transaction.

Where standard agreements, notices, declarations, on-site posters, or other such sources contains the rules listed in the above in the preceding paragraph, that content is void.

Article 27: Proprietors must not insult or defame consumers, and must not search the persons of consumer or their effects, and must not infringe the consumers' physical liberty..

Article 28: Proprietors using the Internet, television, telephone, mail order or other such means to provide goods or services, as well as proprietors providing securities, insurance, banking, and other financial services, shall provide consumers with information such as their their business addresses, contact methods, the quality and quantity of goods or services, and prices or costs , the duration and manner of performance, safety precautions and risk warnings, after-sales service, and civil liability.

Article 29: Proprietors collecting and using consumers' personal information shall abide by principles of legality, propriety and necessity, explicitly stating the purposes, means and scope for collecting or using information, and obtaining the consumers' consent. Proprietors collecting or using consumers' personal information shall disclose their rules for their collection or use of this information, and must not collect or use information in violation of laws, regulations or agreements between the parties.

Proprietors and their employees must keep consumers' personal information they collect strictly confidential and must not disclose, sell, or illegally provide it to others. Proprietors shall employ technical measures and other necessary measures to ensure information security, and to prevent consumers' personal information from being disclosed or lost. In situations where information has been or might be disclosed or lost, proprietors shall immediately adopt remedial measures.

Proprietors must not send commercial information to consumers without their consent or upon their request of consumers, or where they have clearly refused it.

Chapter IV: State Protections of Consumers' Lawful Rights and Interests

Article 30: In drafting laws, regulations, rules, and mandatory standards related to consumer rights and interests, the State shall hear the opinions of consumers, consumer associations, and other organizations.

Article 31: People's governments at all levels shall strengthen their leadership, to organize, coordinate and supervise relevant administrative departments in efforts to protect consumers' lawful rights and interests, and in carrying out their duties to protect consumers' lawful rights and interests.

People's governments at all levels shall strengthen supervision to prevent acts that harm consumers' security in person or property, and to promptly stop such conduct.

Article 32: All levels of people's governments' administrative departments for industry and commerce and other relevant administrative departments shall follow the relevant laws and regulations to take measures to protect the lawful rights and interests of consumers within the scope of their respective functions.

The relevant administrative departments shall hear the opinions of consumers, consumer associations, and other such organizations on issues concerning the transactions of proprietors and the quality of their goods or services, and promptly investigate and address such issues.

Article 33: The relevant administrative departments shall, within the scope of their responsibilities, conduct scheduled or unscheduled inspections of samples of goods and services provided by proprietors, and promptly disclose the results of the sample to the public.

Where the relevant administrative departments discover and determine that the goods or services provided by a proprietor have defects that may endanger the safety of persons or property, they shall immediately order the proprietors to take measures such as stopping sales, issuing warnings, conducting a recall, safely disposing of or destroying the items, and stopping production or services.

Article 34: The relevant state organs shall follow laws and regulations, in punishing proprietors' illegal or criminal conduct in providing goods or services that infringes upon the lawful rights and interests of consumers in providing goods or services.

Article 35: The people's courts shall take measures to facilitate consumers' filing of lawsuits. Disputes on consumer rights and interests dispute which meet the requirements for litigation as set out in the Civil Procedure Law of the People's Republic of China must be accepted and heard in a timely manner.

Chapter V: Consumer Organizations

Article 36: Consumer associations and other consumer organizations are lawfully established social organizations for the protection of consumers lawful rights and interests which conduct social supervision over goods and services.

Article 37: Consumer associations will perform the following public duties:

(1) Provide consumers with consumer information and consultation services, increase consumers' ability to protect their own lawful rights and interests, and bring about civilized, healthy consumerism that conserves resources protects the environment.

(2) Participate in the development of laws, regulations, rules, and mandatory standards related to consumer rights and interests.

(3) Participate in the supervision and inspection of goods and services by the relevant administrative departments.

(4) Make issues concerning the lawful rights and interests of consumers known to the relevant authorities and look in to them, providing recommendations.

(5) Accept consumer complaints and investigate or mediate them.

(6) Where a complaint involves issues of the quality of goods or services, an qualified appraiser may be retained to make an appraisal, and the appraiser shall give notice of his appraisal opinion.

(7) Support consumer victims of conduct harming consumer rights and interests in filing lawsuits or file a lawsuit in accordance with this Law,

(8) Use mass media to expose and criticize conduct harming consumers' lawful rights and interests.

All levels of people's governments shall provide operating funds and other support necessary for consumer associations to perform their duties.

Consumer associations shall earnestly perform their duties to protect the lawful rights and interests of consumers, hear the opinions and suggestions of consumers, and accept social supervision.

Other lawfully established consumer organizations shall follow laws, regulations, and their bylaws to promote activities protecting the lawful rights and interests of consumers.

Article 38: Consumer organizations must not trade in goods or for-profit services and must not collect fees or otherwise seek gain in making recommending services or products to consumers.

Chapter VI: Settlement of Disputes

Article 39: Where disputes over consumer rights and interests arise between proprietors and consumers, they may be settled through the following means:

(1) Discussion and conciliation with the proprietor;

(2) Requesting mediation by a consumer association or any other lawfully established mediation organization;

(3) Filing a complaint with the relevant administrative department;

(4) Applying to an arbitration institution for arbitration under an arbitration agreement with the proprietor;

(5) Filing a lawsuit with a people's court.

Article 40: Where consumers lawful rights and interests are harmed when purchasing or using goods, he may demand compensation from the vendor. After making compensation, vendors have the right to seek compensation from manufacturers or other vendors who provided goods where they have responsibility.

Consumers or other victims suffering personal injuries or property damage caused by defective goods may demand compensation from the vendors and may also demand compensation from the manufacturers. If the manufacturers are responsible, vendors have the right to seek reimbursement from the manufacturers after paying compensation. If the vendors are responsible, manufacturers have the right to seek reimbursement from the vendors after paying compensation.

Where consumers lawful rights and interests are harmed when they accept services, they may request compensation from the service provider.

Article 41: Where consumers' lawful rights and interests are harmed when purchasing or using goods or when accepting services, and the original enterprise has had a merger or division, they may request compensation from the enterprise succeeding in the rights and duties after the modification.

Article 42: Where proprietors illegally use another's business license to provide goods or services, and harm the lawful rights and interests of consumers, the consumer may demand compensation from such proprietors and may also demand compensation from the owner of the business license.

Article 43: Where consumers lawful rights and interests are harmed in purchasing goods or receiving services from trade fairs or leased counters, they may claim compensation from the vendors or service providers. After trade fairs has closed or the counter lease expired, they may also demand compensation from the organizers of the trade fairs or the counter's lessor. The organizers of trade fairs or the lessors or counters have the right to seek reimbursement from the vendors or service providers, after making compensation.

Article 44: Where consumers purchase goods or receiving services through online trading platforms and there lawful rights and interests are harmed, they may demand compensation from the vendors or service providers. If the providers of online trading platforms are unable to provide the true names and addresses and valid contact methods for the vendors or service providers, consumers may also claim compensation from the providers of the online trading platforms; and where the providers of the online trading platforms have made promises more favorable to consumers, they shall fulfill such promises. The providers of online trading platforms shall, after making compensation, have the right to be seek reimbursement by the vendors or service providers.

Where the providers of online trading platform clearly know or should have known that vendors or service providers harmed the lawful rights and interests of consumers through the platform, but fail to take necessary measures, they shall be jointly liable with the vendors or service providers.

Article 45: Consumers whose lawful rights and interests are harmed because proprietors used false advertising or any other means of fake promotions to provide goods or services, they may demand compensation from the proprietors. Where advertising agents or publishers release false advertisements, consumers may request the competent administrative departments impose punishments. Where advertising agents or publishers cannot provide the true names and addresses and valid contact methods of a proprietor, they bear liability for compensation.

Where advertising agents or publishers design produce, or publish false advertisements for goods or services upon with the lives or health of consumers are dependent, and harm defendants, they shall be jointly liable with the proprietors providing the goods or services.

Where in false advertisements or other false promotions, social groups, other organizations or individuals recommend goods or services upon which consumers' lives or health is dependent, causing damage to consumers, they shall be jointly liable with the proprietors providing the goods or services.

Article 46: Where consumers make complaints to the relevant administrative department, that department shall handle the complaint and inform the consumer with seven working days of receiving it.

Article 47:For infringement of the lawful rights and interests of the consumer public, the China Consumers' Association and consumer associations set up by the provinces, autonomous regions, and directly governed municipalities may raise lawsuits in the people's courts.

Chapter VII: Legal Responsibility

Article 48 In any of the following circumstances, proprietors providing goods or services shall bear civil liability in accordance with the provisions of other applicable laws and regulations, except as otherwise provided for in this Law:

(1) the goods or services are defective;

(2) The goods do not have the functionality they should, and no explanation was provided at the time of sale;

(3) The goods do not meet the standards indicated on them or their packaging.

(4) The goods fail to meet the quality indicated by product instructions, actual samples or other means.

(5) The goods are expressly rejected by the state of production, or are expired or deteriorated;

(6) the quantity of goods is insufficient;

(7) Services and fees violate agreements.

(8) Where consumers' requests for repairs, reproduction, replacement, return of goods, supplementing goods, refunding payments for goods or services, or compensation for losses. are deliberately delayed or unreasonably refused;

(9) Other situations harming rights and interests as provided by laws and regulations.

Where proprietors fail to fulfill their duty to ensure safety, causing harm consumers, they shall bear tort liability.

Article 49: Where proprietors provide goods or services causing personal injuries to consumers or other victims, they shall compensate them for medical expenses, care expenses, transportation expenses, and other reasonable expenses incurred for treatment and rehabilitation, as well as resulting lost wages. Where disabilities are caused, proprietors shall also compensate them for expenses on assisting devices for disability and pay disability compensation. Where death is caused, proprietors shall also pay funeral expenses and death compensation.

Article 50: Proprietors who harm consumers' human dignity, infringe upon consumers' personal freedom or upon consumers' lawful right to protect personal information, shall cease infringement, restore consumers' reputation, eliminate the impact, make formal apologies, and compensate consumers for losses.

Article 51: Where proprietors exhibit conduct infringing upon the personal rights and interests of consumers or other victims, such as insulting or defaming, searching their bodies, or violating their personal freedom, causing serious mental damages, the victims may seek compensation for emotional harm.

Article 52: Where the goods or services provided by proprietors cause property damage to consumers, proprietors shall assume civil liability in accordance with the law or as agreed by the parties, including for repair, remanufacture, replacement, return of goods, making up shortage of goods, refunding payments for goods or services, or compensation for losses.

Article 53:Where proprietors take advance payment for goods or services they shall provide them as agreed. Proprietors who do not follow the agreement shall follow the consumer's requests performance or refund of the advance payments, and shall pay interest on advance payments and necessary reasonable expenses incurred by consumers.

Article 54: Where goods are determined to be non-compliant by the relevant administrative department and consumers request to return them, proprietors shall be responsible for their return.

Article 55: Where proprietors fraudulently provide goods or services, they shall follow consumers' requests to increase the compensation for their losses, with the increased compensation being three times the price paid by a consumer for purchased goods or the services received, or 500 yuan if the increase as calculated before is less than 500 yuan, except as otherwise provided for by the law. Where the law provides otherwise, follow those provisions.

Where proprietors clearly know goods or services are defective but still continue to provide them to consumers, causing death or serious damage to the heath of consumers or other victims, the victims shall have the right to demand proprietors compensate them for losses in accordance with Articles 49 and 51 of this Law and other provisions of laws, and have the right to demand punitive compensation up to double the amount of losses incurred.

Article 56:In any of the following circumstances, in addition to bearing corresponding civil liabilities, where other applicable laws and regulations provide for the punishing authorities and forms of punishment, follow those laws or regulations in implementation. Where laws or regulations have no relevant provisions, the administrative departments for industry and commerce or other relevant administrative departments shall order corrections, and based on the circumstances, may warn the proprietors, confiscate their unlawful gains, fine them between one and ten times the illegal income or, if there is no illegal income, fine them up to 500,000 yuan, or impose a combination of the above penalties; and where the circumstances are serious, order them to suspend business for rectification or revoke their business licenses:

(1) Where goods or services provided do not meet the requirements for the protection of personal and property.

(2) where goods are adulterated, fake goods are passed as genuine, seconds are passed as quality, or non-compliant goods are passed as compliant;

(3) Where goods have been expressly rejected by the state of manufacture, expired or deteriorated goods are sold;

(4) Where the origins of goods is falsified, factory names and addresses of others are forged or used fraudulently, the date of production is misrepresented, or certification marks and other quality marks are forged or used fraudulently;

(5) Where goods being sold are not inspected or quarantined as required, or where inspection or quarantine results are forged;

(6) Where goods or services are promoted in a false or misleading manner;

(7) where ordered by the relevant administrative departments for measures on defective goods or services, such as stopping sales, issuing warnings, recalls, safe disposition, destruction, and stopping production or services, for their defective goods or services, are refused or delayed.

(8) Where consumers' requests for repairs, reproduction, replacement, return of goods, supplementing goods, refunding payments for goods or services, or compensation for losses. are deliberately delayed or unreasonably refused;

(9) Where the human dignity or personal freedom of consumers is infringed or consumers' lawful right to protection of their personal information is infringed.

(10) Other situations where the law or regulations provide for punishment of harm to consumers' lawful rights and interests.

In the circumstances in the preceding paragraph, in addition to punishment in accordance with laws and regulations, the punishing organs shall record this into the credit files and disclose it to the public.

Article 57: Where proprietors violate the provisions of this law in providing goods or services so as to violate consumers' lawful rights and interests and this constitutes a crime, the will be pursued for criminal liability in accordance with law.

Article 58: Proprietors violating the provisions of this Law shall bear responsibility for civil compensation and penalties or fines, if their assets are insufficient to pay both of these, they shall first bear responsibility for compensation.

Article 59: Proprietors who are unsatisfied with an administrative punishment decision may request an administrative reconsideration or raise an administrative lawsuit in accordance with law.

Article 60: Those who obstruct by force, threats or other means, the legal performance of duties by the employees of relevant administrative departments, will be pursued for criminal liability in accordance with the law; those resisting or obstructing the legal performance of duties by the employees of relevant administrative departments without resorting to violence or threats, will be punished by the public security authorities in accordance with the provisions of the Public Security Administration Punishments Law of the People's Republic of China.

Article 61: Where employees of state organs neglect their duties or abed proprietors' infringement of consumers' lawful rights and interests, that state organ or the state organ at the level above punish them administratively ; where the circumstances are serious and constitute a crime, criminal liability will be pursued in accordance with law.

Chapter VIII: Supplementary Provisions

Article 62: Consult this law in enforcing farmers' purchases and use of production materials to be used directly in agricultural production.

Article 63: This Law shall go into effect January 1, 1994.