PRC Law on the Protection of the Rights and Interests of Consumers (2nd Revision)

Article 2: The rights and interests of consumers who purchase or use goods or who receive services for consumption purposes in daily life shall be protected under this Law. Where this Law is silent, such rights and interests shall be protected under other relevant laws and regulations.

Article 3: Business operators shall observe this Law in providing goods produced or sold by them or services for consumers. Where this Law is silent, other relevant laws and regulations shall be observed.

Article 4: Business operators shall carry out transactions with consumers on the basis of the principles of free will, equality, fairness and good faith.

Article 5: The state protects the lawful rights and interests of consumers from being infringed.

The state adopts measures to protect consumers in exercising their rights in accordance with the law and to safeguard the lawful rights and interests of consumers.

The state advocates that consumption be done in a manner that is civilised, healthy, economical of resources and environmentally friendly, and the state opposes waste.

Article 6: Protection of the lawful rights and interests of consumers shall be the joint responsibility of the whole society.

The state encourages and supports all kinds of public monitoring by organisations and individuals of acts that prejudice the lawful rights and interests of consumers.

The mass media shall properly carry out promotion on safeguarding the lawful rights and interests of consumers, and monitor acts that prejudice the lawful rights and interests of consumers through public opinion.

Part Two: Rights of a consumer

Article 7: When a consumer purchases or uses a good or receives a service, he/she/it shall have the right to have his/her/its personal or property safety free from harm.

A consumer shall have the right to require a good and a service provided by a business operator to meet the requirements for the protection of personal and property safety.

Article 8: A consumer shall have the right to know the facts on the good purchased or used or on the service received.

A consumer shall, according to different circumstances of a good or service, have the right to require the business operator to provide relevant information on the price, place of origin, producer, use, functions, specifications, grade, main ingredients, date of production, date of expiry and inspection certificate, use manual and after-sale service of a good, or on the contents, specifications and fees of a service.

Article 9: A consumer shall have the right to choose a good or a service on his/her/its own.

A consumer shall have the right to choose, on his/her/its own, the business operator providing the good or service and the type of good or the form of service, and to decide on his/her/its own whether or not to buy a good or receive a service.

When a consumer chooses a good or a service on his/her/its own, he/she/it shall have the right to compare, appraise and select.

Article 10: A consumer shall have the right to a fair transaction.

When a consumer purchases a good or receives a service, he/she/it shall have the right to receive fair transaction conditions such as guarantee of quality, reasonable price and accurate measures, and to reject coercive transaction acts by business operators.

Article 11: A consumer who suffers harm to his/her/its personal or property safety due to the purchase or use of a good or the receipt of a service shall have the right to obtain compensation in accordance with the law.

Article 12: Consumers shall have the right to establish in accordance with the law social organisations for the safeguarding of their own lawful rights and interests.

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

A consumer should strive to master all necessary facts about, and techniques to use, a good or a service in order to use a good properly and increase his/her/its awareness of self-protection.

Article 14: When a consumer purchases or uses a good or receives a service, he/she shall have the right to have his/her personal dignity, and ethnic customs and practices respected, and the right to have his/her personal information protected in accordance with the law.

Article 15: A consumer shall have the right to monitor goods and services as well as work on the protection of the rights and interests of consumers.

A consumer shall have the right to report or institute a legal action against acts that infringe upon the rights and interests of consumers and unlawful or derelict acts of state authorities and personnel working in such authorities in the course of protecting the rights and interests of consumers. A consumer shall have the right to raise criticism and suggestions for the protection of the rights and interests of consumers.

Part Three: Obligations of a business operator

Article 16: A business operator that provides a good or a service to a consumer shall perform his/her/its obligations in accordance with this Law and other relevant laws and regulations.

Where there is an agreement between a consumer and a business operator, the business operator shall perform his/her/its obligations in accordance with the agreement. However, the agreement between the two parties may not be against laws and regulations.

A business operator that offers goods or services to consumers shall strictly adhere to social ethics, operate in good faith and ensure the lawful rights and interests of consumers; and he/she/it may not set unfair or unreasonable transaction conditions and may not coerce transactions.

Article 17: A business operator shall listen to the views of consumers on the goods or services provided by him/her/it and be subject to monitoring by consumers.

Article 18: A business operator shall ensure the goods or services provided by him/her/it meet the requirements for the protection of personal and property safety. For a good or a service that may jeopardise the safety of persons or property, he/she/it shall make a true statement and a clear warning for consumers, explain and indicate the correct methods for the use of such good or receipt of such service and the preventive measures against such occurrence.

The operators of places of business such as hotels, shopping malls, restaurants, banks, airports, bus/train stations, ports, cinemas and theatres shall perform their obligation of ensuring the safety of consumers.

Article 19: If a business operator discovers a defect in a good or service that he/she/it offers, jeopardising the safety of the person or property, he/she/it shall immediately report the same to the relevant administrative department, inform consumers and take measures such as halting the sale thereof, giving a warning, ordering a recall, processing it in such a manner as to make it harmless, destroying it or halting production thereof or the service. If the business operator opts for a recall, he/she/it shall bear the expenses necessarily expended by consumers in connection with the recall of the goods.

Article 20: If a business operator provides consumers information on the quality, performance, purpose, expiry date, etc. of a good or service, such information shall be true and complete, and the business operator may not conduct false or misleading publicity.

A business operator shall provide true and clear answers to questions raised by consumers concerning issues such as the quality and the use of goods or services provided by him/her/it.

The price shall be clearly indicated on the goods or services that a business operator offers.

Article 21: A business operator shall clearly indicate his/her/its true name and mark.

A business operator that leases counters or venues of another shall clearly indicate his/her/its true name and mark.

Article 22: When offering goods or services, a business operator shall issue to consumers an invoice or other such proof of purchase or service document in accordance with relevant state provisions or commercial practice. If a consumer requests an invoice or other such proof of purchase or service document, the business operator must issue one.

Article 23: A business operator shall warrant the quality, performance, purpose and expiry date that the goods or services he/she/it offers ought to have under normal use of such goods or receipt of such services, unless the consumer was aware of the existence of a defect before the purchase of the good in question or receipt of the service in question, and such defect does not run counter to mandatory provisions of laws

A business operator that indicates the quality condition of a good or a service by way of advertisements, product descriptions, physical samples or other means shall ensure that the actual quality of the good or service provided by him/her/it is in line with the indicated quality condition.

If a consumer discovers a defect in a motor vehicle, computer, television, refrigerator, air conditioner, washing machine or other such consumer durable, or decoration, renovation or other such service provided by a business operator within six months from the date of acceptance of such good or service and a dispute arises as a result, the business operator shall bear the burden of proof in respect of the defect.

Article 24: If a good or service offered by a business operator does not meet quality requirements, the consumer may return the same in accordance with state provisions or as agreed by the parties, or demand that the business operator perform his/her/its obligation of replacement, repair, etc. In the absence of state provisions or agreement between the parties, the consumer may return the good within seven days from the date of receipt thereof. If the statutory conditions for termination of a contract are satisfied after the seven days, the consumer may return the goods in a timely manner, and if the statutory conditions are not satisfied, he/she/it may demand that the business operator perform his/her/its obligation of replacement, repair, etc.

If return, replacement or repair is carried out in accordance with the preceding paragraph, the business operator shall bear necessary expenses such as shipping.

Article 25: Where a business operator sells goods online, by television shopping, telephone sales, mail order or other such means, consumers shall have the right to return the goods, no questions asked, within seven days from the date of receipt of the goods, with the exception of the following goods:

(1) goods made to order for the consumer;

(2) fresh, live or perishable goods;

(3) digital goods, such as audio and video recordings or computer software that have been downloaded or the packaging of which the consumer has opened; and

(4) delivered newspapers or periodicals;

In addition to the goods set forth in the preceding paragraph, return with no questions asked shall not apply to other goods that, by virtue of their nature, the consumer confirmed were not suitable for return at the time of purchase.

Goods returned by a consumer shall be in good condition. The business operator shall refund the price of the goods paid by the consumer within seven days from the date of receipt of the returned goods. The shipping charges for the return of the goods shall be borne by the consumer, unless otherwise agreed by the business operator and the consumer, in which case such agreement shall apply.

Article 26: Where a business operator uses standard clauses in his/her/its business activities, he/she/it shall highlight for the consumer's attention the contents that are of material interest to the consumer, such as the quantity, quality and price of, or charges for, the goods or services, the deadline for, and method of, performance, safety instructions and risk warnings, after-sales services, civil liability, etc., and give an explanation of the same as requested by the consumer.

A business operator may not set forth provisions, by way of standard clauses, notice, declaration, in-store announcement, etc., that are unfair to consumers or unreasonable, such as provisions that deny or restrict consumers' rights, reduce or exempt the business operator's liability or increase the liability of consumers, and may not employ standard clauses or resort to technical means to coerce transactions.

If standard clauses, notices, declarations, in-store announcements, etc. contain any of the contents set forth in the preceding paragraph, such contents shall be invalid.

Article 27: A business operator may not insult or defame consumers. They may not search the body of consumers or the articles carried by them and may not infringe upon the personal liberty of consumers.

Article 28: Business operators that offer goods or services online, by television shopping, telephone sales, mail order or other such means as well as business operators that offer securities, insurance, banking and other such financial services shall provide consumers information such as their business address, contact information, the quantity, quality and price of, or charges for, the goods or services, the deadline for, and method of, performance, safety instructions and risk warnings, after-sales services, civil liability, etc.

Article 29: If a business operator wishes to collect and use the personal information of consumers, he/she/it shall comply with the principles of lawfulness, legitimacy and necessity, expressly state his/her/its objective for, and method and scope of, collection and use of the information, and secure consumers' consent therefor. A business operator that collects and uses consumers' personal information shall disclose his/her/its rules for the collection and use thereof, and may not collect and use information in violation of laws or regulations or in breach of the agreement between the parties.

A business operator and his/her/its working personnel must strictly maintain the confidentiality of the collected personal information of consumers, and may not disclose, sell or illegally provide the same to third parties. A business operator shall take technical and other necessary measures to ensure the security of information and prevent consumers' personal information being divulged or lost. Where information has been or could be divulged or lost, he/she/it shall promptly take remedial measures.

A business operator may not send information of a commercial nature to a consumer without his/her/its consent or request or if he/she/it expressly states that he/she/it does not wish to receive the same.

Part Four: State protection of the lawful rights and interests of consumers

Article 30: When the state formulates laws, regulations, rules and mandatory standards concerning the rights and interests of consumers, it shall listen to the opinions of consumers and consumers' associations.

Article 31: People's governments at every level shall strengthen their leadership, arrange, coordinate and cause relevant administrative departments to duly carry out the work involved in protecting the lawful rights and interests of consumers, and perform the duty of protecting the lawful rights and interests of consumers.

People's governments at every level shall strengthen their monitoring, prevent the occurrence of acts that jeopardise the personal and property safety of consumers and, in a timely manner, put a stop to acts that jeopardise the personal and property safety of consumers.

Article 32: Administrations for industry and commerce and other relevant administrative departments of people's governments at every level shall adopt measures, in accordance with laws and regulations and within their respective purviews, to protect the lawful rights and interests of consumers.

The relevant administrative departments shall listen to the opinions of consumers and organisations such as consumers' associations on issues concerning the transaction acts and quality of goods and services of business operators, and investigate and handle the same in a timely manner.

Article 33: Each relevant administrative authority shall, within its respective purview, conduct randomised inspections of the goods and services offered by business operators on a regular or ad hoc basis, and publicly announce the outcome of such randomised inspections in a timely manner.

If a relevant administrative authority discovers and finds that a good or service provided by a business operator contains a defect, and such defect jeopardises the safety of the person or property, it shall promptly order the business operator to take a measure such as halting the sale thereof, giving a warning, ordering a recall, processing it in such a manner as to make it harmless, destroying it or halting production thereof or the service.

Article 34: The relevant state authorities shall penalise, in accordance with laws and regulations, business operators for their illegal and criminal acts that infringe upon the lawful rights and interests of consumers in the provision of goods and services.

Article 35: People's courts shall adopt measures to facilitate the institution of legal actions by consumers. Disputes over the rights and interests of consumers that meet the conditions for instituting an action as specified in the PRC Civil Procedure Law (2nd Revision) must be accepted and tried in a timely manner.

Part Five: Consumer organisations

Article 36: Consumers' associations and other consumer organisations are social organisations established in accordance with the law that carry out social monitoring of goods and services and protect the lawful rights and interests of consumers.

Article 37: A consumers' association shall perform the following public service duties:

(1) providing consumer information and consulting services to consumers, enhancing consumers' ability to safeguard their own lawful rights and interests and leading consumption in a civilised, healthy, economical of resources and environmentally friendly direction;

(2) participating in the formulation of laws, regulations, rules and mandatory standards concerning the rights and interests of consumers;

(3) participating in the monitoring and inspection of goods and services by relevant administrative departments;

(4) reporting to, making inquiries with and making suggestions to, relevant departments on issues concerning the lawful rights and interests of consumers;

(5) accepting complaints from consumers, and investigating and mediating the subject matter of the complaints;

(6) if a complaint involves the issue of the quality of a good or service, appointing a qualified professional expert to conduct an assessment, and the professional expert shall give an assessment opinion;

(7) with respect to acts that prejudice the lawful rights and interests of consumers, supporting injured consumers in instituting legal actions or instituting legal actions in accordance herewith; and

(8) with respect to acts that prejudice the lawful rights and interests of consumers, disclosing and criticising the same in the mass media.

People's governments at every level shall give consumers' associations the funds and other such support necessary for the performance of their duties.

A consumers' association shall earnestly perform its duty of safeguarding the lawful rights and interests of consumers, listen to the opinions and suggestions of consumers and subject itself to monitoring by the public.

Other consumer organisations established in accordance with the law shall carry out their activities of protecting the lawful rights and interests of consumers in accordance with laws, regulations and their charters.

Article 38: A consumer organisation may not deal in goods or provide for-profit services, and may not recommend goods or services to consumers by charging a fee therefor or otherwise seeking gain.

Part Six: Resolution of disputes

Article 39: Consumers may resolve their disputes with business operators over their rights and interests in the following ways:

(1) negotiating a settlement with the business operator;

(2) requesting a consumers' association or another lawfully established mediation organisation to mediate;

(3) lodging a complaint to the relevant administrative department;

(4) applying to an arbitration organisation for arbitration in accordance with the arbitration agreement reached with the business operator; or

(5) instituting a legal action in a people's court.

Article 40: A consumer whose lawful rights and interests are prejudiced during the purchase or use of a good may demand compensation from the seller. Where the liability lies with the producer or another seller that provides the goods to the seller, the seller, after settling the compensation, shall have the right to recover the same from the producer or the other seller.

A consumer or other injured party whose body or property is harmed due to a defect in a good may demand compensation from the seller as well as the producer. Where the liability lies with the producer, the seller, after settling the compensation, shall have the right to recover the same from the producer. Where the liability lies with the seller, the producer, after settling the compensation, shall have the right to recover the same from the seller.

A consumer whose lawful rights and interests are prejudiced during the receipt of a service may demand compensation from the service provider.

Article 41: If a consumer's lawful rights and interests are prejudiced during the purchase or use of a good or receipt of a service and the original enterprise is divided or merged, he/she/it may demand compensation from the enterprise that takes over the rights and obligations of such enterprise after the change.

Article 42: Where an illegal business operator prejudices the lawful rights and interests of a consumer in providing goods or services by using another party's business licence, the consumer may demand compensation from such business operator as well as the holder of the business licence.

Article 43: A consumer whose lawful rights and interests are prejudiced during the purchase of a good or receipt of a service in a trade fair or at a leased counter may demand compensation from the seller of the good or the service provider. After the trade fair is finished or the lease of the counter has expired, the consumer may also demand compensation from the organiser of the trade fair or the lessor of the counter. After the organiser of the trade fair or the lessor of the counter settles the compensation, he/she/it shall have the right to recover the same from the seller of the goods or the service provider.

Article 44: If a consumer buys a good or accepts a service via an online trading platform and his/her/its lawful rights and interests are prejudiced, he/she/it may demand compensation from the seller or service provider. If the online trading platform provider is unable to provide the true name, address and valid contact information of the seller or service provider, the consumer may also demand compensation from the online trading platform provider. If the online trading platform provider gives an undertaking that is more favourable to consumers, it shall perform such undertaking. Once the online trading platform provider has paid compensation, it shall have the right to recover the same from the seller or service provider.

If an online trading platform provider is well aware or ought to have been aware that a seller or service provider was using its platform to infringe the lawful rights and interests of consumers and failed to take the necessary measures, it shall bear joint and several liability with the seller or service provider in accordance with the law.

Article 45: If the lawful rights and interests of a consumer are prejudiced as the result of a business operator using false advertising or other false publicity in offering his/her/its goods or services, he/she/it may demand compensation from the business operator. If an advertising business operator or advertisement publisher publishes a fraudulent advertisement, a consumer may petition the competent administrative department to impose sanctions. If an advertising business operator or advertisement publisher is unable to provide the true name, address and valid contact information of the business operator, it shall be liable for compensation.

If an advertising business operator or advertisement publisher designs, produces and publishes a false advertisement about a good or service that has a bearing on the life or health of consumers, causing harm to consumers, it shall bear joint and several liability with the business operator that offered the good or service.

If an association or other organisation or individual recommends a good or service to consumers in a false advertisement or other false publicity about a good or service that has a bearing on the life or health of consumers, causing harm to consumers, he/she/it shall bear joint and several liability with the business operator that offered the good or service.

Article 46: When a consumer files a complaint with a relevant administrative department, the department shall handle the same and inform the consumer within seven working days of receipt of the complaint.

Article 47: Where an act infringes the lawful rights and interests of numerous consumers, the China Consumers' Association, or the consumers' association established in the province, autonomous region or municipality directly under the central government may institute a legal action in a people's court.

Part Seven: Legal liability

Article 48: In any of the following circumstances, except where otherwise provided by this Law, a business operator that provides goods or services shall bear civil liability in accordance with other relevant laws and regulations:

(1) a defect exists in a good;

(2) a good does not possess functions it should possess, and this is not stated when such good is sold;

(3) the standards of the good indicated on a good or on the package of such good are not met;

(4) the quality condition indicated by way of descriptions of a good, physical samples, etc. is not met;

(5) goods produced has been expressly ordered be eliminated by the state or goods sold have expired or deteriorated;

(6) goods sold are not adequate in quantity;

(7) the service items and charges are in violation of the agreement;

(8) demands by a consumer for repair, redoing, replacement, return, making up the shortfall in the quantity of goods, refund of the price paid/service fee or the claim is handled with a deliberate delay or rejected without reason; or

(9) another circumstance whereby the rights and interests of consumers are prejudiced as provided by laws or regulations.

If a business operator fails to perform his/her/its obligation toward consumers of ensuring their safety, causing harm to consumers, he/she/it shall be liable for tort.

Article 49: Where a business operator offering goods or services causes bodily harm to a consumer or other injured party, he/she/it shall compensate for the reasonable expenses expended for treatment and recovery, such as medical fees, nursing fees and transportation expenses, and the reduction in income due to being absent from work. If he/she/it causes disability, he/she/it shall additionally compensate for the expenses of the aids needed to live a life with a disability and pay disability compensation. If he/she/it causes death, he/she/it shall additionally compensate for the funeral expenses and pay death compensation.

Article 50: If a business operator offends a consumer's personal dignity, infringes a consumer's personal liberty or infringes a consumer's right to have his/her personal information protected in accordance with the law, he/she/it shall halt the infringement, restore the consumer's reputation, eliminate the effect, apologise and compensate for the losses.

Article 51: If a business operator infringes a consumer's or other injured party's personal rights and interests by insulting or defaming him/her, doing a body search, infringing his/her personal liberty, etc., thereby causing serious psychological injury, the injured party may demand compensation for psychological injury.

Article 52: Where a business operator offering goods or services causes damage to the property of a consumer, he/she/it shall bear civil liability by effecting repairs, redoing, replacement, return, making up the shortfall in the quantity of goods, refunding the price paid /service fee or compensating for the losses, etc. in accordance with the law or the agreement between the parties.

Article 53: A business operator that provides a good or a service against advance payment shall provide such good or service in accordance with the agreement. If the business operator fails to do so in accordance with the agreement, he/she/it shall, at the request of the consumer, implement the agreement or refund the advance payment and bear the interest on the advance payment and reasonable expenses needed to be paid by the consumer.

Article 54: Where a consumer demands the return of a good that is verified not to be up to the standard by the relevant administrative department in accordance with the law, the business operator shall be responsible for the return of such good.

Article 55: Where a business operator offering goods or services commits fraud, he/she/it shall increase the compensation for the losses incurred by the consumer as demanded by him/her/it. The amount of such increased compensation shall be three times the price paid by the consumer to purchase the good or the charge paid for receiving the service; and if the amount of the increased compensation is less than Rmb500, it shall be set at Rmb500. If otherwise provided in law, such provisions shall apply.

If a business operator is well aware that a good or service contains a defect, but nevertheless offers it to consumers, thereby causing the death of, or serious damage to the health of, a consumer or other injured party, the injured party shall have right to demand compensation for loss in accordance with legal provisions such as Article 49 or 51 hereof and the right to demand punitive damages of up to twice the loss incurred.

Article 56: Where any of the circumstances set forth below applies to a business operator, if other relevant laws or regulations specify the penalty imposing authority and the penalty method, matters shall be handled in accordance with such laws or regulations, in addition to the business operator bearing the attendant civil liability; if laws and regulations are silent, the administration for industry and commerce or other relevant administrative department shall order him/her/it to rectify the matter and may, depending on the circumstances, give a warning, confiscate the illegal income and/or impose a fine of not less than the amount and not more than 10 times the illegal income, or if there was no illegal income, impose a fine of up to Rmb500,000, singly or all together; and if the circumstances are serious, it shall order him/her/it to halt operations to undergo rectification and revoke his/her/its business licence:

(1) the goods or services he/she/it offers do not satisfy the requirement of ensuring the personal or property safety;

(2) the goods are adulterated, mixed with improper elements or counterfeited or sub-standard goods are used in imitation of standard goods;

(3) he/she/it produced goods that the state has expressly ordered be eliminated or sold goods whose expiry dates have passed or that have deteriorated;

(4) he/she/it falsified the origin of the goods, falsified or passed off the name and/or address of another's factory, altered the production date or forged or passed off a certification mark or other such quality mark;

(5) goods subject to inspection or quarantine are sold without inspection or quarantine or inspection or quarantine results are falsified;

(6) he/she/it used false or misleading publicity for a good or service;

(7) he/she/it refused to take or delayed in taking measure in respect of a defective good or service such as halting the sale thereof, giving a warning, ordering a recall, processing it in such a manner as to make it harmless, destroying it or halting production thereof or the service as ordered by the relevant administrative department;

(8) he/she/it deliberately delayed or rejected without reason a demand made by a consumer for repair, redoing, replacement, return, making up the shortfall in the quantity of goods, refund of payment/service fee or compensation for losses;

(9) he/she/it offended a consumer's personal dignity, infringed a consumer's personal liberty or infringed a consumer's right to have his/her personal information protected in accordance with the law;

(10) anther circumstance as specified by laws or regulations whereby penalties shall be imposed for prejudice of the rights and interests of consumers applies.

If any of the aforementioned circumstances applies to a business operator, in addition to imposing penalties in accordance with laws and regulations, the penalty imposing authority shall record the same in the integrity file and make a public announcement.

Article 57: If a business operator violates this Law in offering goods or services, infringing the lawful rights and interests of consumers, and constituting a criminal offence, his/her/its criminal liability shall be pursued in accordance with the law.

Article 58: If a business operator violates this Law and is required to bear the liability for civil compensation as well as pay a fine, but his/her/its property is insufficient to pay both, he/she/it shall first bear the liability for civil compensation.

Article 59: If a business operator is dissatisfied with a penalty decision, he/she/it may apply for administrative review or institute an administrative action in accordance with the law.

Article 60: Where the personnel of a relevant administrative department are obstructed, by means such as force or intimidation, from carrying out their duties in accordance with the law, criminal liability shall be pursued in accordance with the law. Where the personnel of a relevant administrative department are rejected or obstructed, without the use of force or intimidation, from carrying out their duties in accordance with the law, penalties shall be imposed by the public security authorities in accordance with the PRC Law on the Imposition of Penalties in Connection with the Administration of Public Security.

Article 61: Personnel of state authorities who neglect their duties or shelter business operators from acts infringing the lawful rights and interests of consumers shall be subject to administrative penalties by their work unit or the authority at a higher level. Where the circumstances are serious and a criminal offence is constituted, criminal liability shall be pursued in accordance with the law.

Part Eight: Supplementary provisions

Article 62: The purchase and usage by farmers of production materials used directly for agricultural production purposes shall be handled with reference to this Law.

Article 63: This Law shall be effective as of January 1 1994.

(Adopted at the 5th Session of the Standing Committee of the 12th National People's Congress on October 25 2013 and effective as of March 15 2014.)

PRC President's Order (No.7 of the 12th NPC)

Part One: General provisions

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

Article 2: The rights and interests of consumers who purchase or use goods or who receive services for consumption purposes in daily life shall be protected under this Law. Where this Law is silent, such rights and interests shall be protected under other relevant laws and regulations.

Article 3: Business operators shall observe this Law in providing goods produced or sold by them or services for consumers. Where this Law is silent, other relevant laws and regulations shall be observed.

Article 4: Business operators shall carry out transactions with consumers on the basis of the principles of free will, equality, fairness and good faith.

Article 5: The state protects the lawful rights and interests of consumers from being infringed.

The state adopts measures to protect consumers in exercising their rights in accordance with the law and to safeguard the lawful rights and interests of consumers.

The state advocates that consumption be done in a manner that is civilised, healthy, economical of resources and environmentally friendly, and the state opposes waste.

Article 6: Protection of the lawful rights and interests of consumers shall be the joint responsibility of the whole society.

The state encourages and supports all kinds of public monitoring by organisations and individuals of acts that prejudice the lawful rights and interests of consumers.

The mass media shall properly carry out promotion on safeguarding the lawful rights and interests of consumers, and monitor acts that prejudice the lawful rights and interests of consumers through public opinion.

Part Two: Rights of a consumer

Article 7: When a consumer purchases or uses a good or receives a service, he/she/it shall have the right to have his/her/its personal or property safety free from harm.

A consumer shall have the right to require a good and a service provided by a business operator to meet the requirements for the protection of personal and property safety.

Article 8: A consumer shall have the right to know the facts on the good purchased or used or on the service received.

A consumer shall, according to different circumstances of a good or service, have the right to require the business operator to provide relevant information on the price, place of origin, producer, use, functions, specifications, grade, main ingredients, date of production, date of expiry and inspection certificate, use manual and after-sale service of a good, or on the contents, specifications and fees of a service.

Article 9: A consumer shall have the right to choose a good or a service on his/her/its own.

A consumer shall have the right to choose, on his/her/its own, the business operator providing the good or service and the type of good or the form of service, and to decide on his/her/its own whether or not to buy a good or receive a service.

When a consumer chooses a good or a service on his/her/its own, he/she/it shall have the right to compare, appraise and select.

Article 10: A consumer shall have the right to a fair transaction.

When a consumer purchases a good or receives a service, he/she/it shall have the right to receive fair transaction conditions such as guarantee of quality, reasonable price and accurate measures, and to reject coercive transaction acts by business operators.

Article 11: A consumer who suffers harm to his/her/its personal or property safety due to the purchase or use of a good or the receipt of a service shall have the right to obtain compensation in accordance with the law.

Article 12: Consumers shall have the right to establish in accordance with the law social organisations for the safeguarding of their own lawful rights and interests.

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

A consumer should strive to master all necessary facts about, and techniques to use, a good or a service in order to use a good properly and increase his/her/its awareness of self-protection.

Article 14: When a consumer purchases or uses a good or receives a service, he/she shall have the right to have his/her personal dignity, and ethnic customs and practices respected, and the right to have his/her personal information protected in accordance with the law.

Article 15: A consumer shall have the right to monitor goods and services as well as work on the protection of the rights and interests of consumers.

A consumer shall have the right to report or institute a legal action against acts that infringe upon the rights and interests of consumers and unlawful or derelict acts of state authorities and personnel working in such authorities in the course of protecting the rights and interests of consumers. A consumer shall have the right to raise criticism and suggestions for the protection of the rights and interests of consumers.

Part Three: Obligations of a business operator

Article 16: A business operator that provides a good or a service to a consumer shall perform his/her/its obligations in accordance with this Law and other relevant laws and regulations.

Where there is an agreement between a consumer and a business operator, the business operator shall perform his/her/its obligations in accordance with the agreement. However, the agreement between the two parties may not be against laws and regulations.

A business operator that offers goods or services to consumers shall strictly adhere to social ethics, operate in good faith and ensure the lawful rights and interests of consumers; and he/she/it may not set unfair or unreasonable transaction conditions and may not coerce transactions.

Article 17: A business operator shall listen to the views of consumers on the goods or services provided by him/her/it and be subject to monitoring by consumers.

Article 18: A business operator shall ensure the goods or services provided by him/her/it meet the requirements for the protection of personal and property safety. For a good or a service that may jeopardise the safety of persons or property, he/she/it shall make a true statement and a clear warning for consumers, explain and indicate the correct methods for the use of such good or receipt of such service and the preventive measures against such occurrence.

The operators of places of business such as hotels, shopping malls, restaurants, banks, airports, bus/train stations, ports, cinemas and theatres shall perform their obligation of ensuring the safety of consumers.

Article 19: If a business operator discovers a defect in a good or service that he/she/it offers, jeopardising the safety of the person or property, he/she/it shall immediately report the same to the relevant administrative department, inform consumers and take measures such as halting the sale thereof, giving a warning, ordering a recall, processing it in such a manner as to make it harmless, destroying it or halting production thereof or the service. If the business operator opts for a recall, he/she/it shall bear the expenses necessarily expended by consumers in connection with the recall of the goods.

Article 20: If a business operator provides consumers information on the quality, performance, purpose, expiry date, etc. of a good or service, such information shall be true and complete, and the business operator may not conduct false or misleading publicity.

A business operator shall provide true and clear answers to questions raised by consumers concerning issues such as the quality and the use of goods or services provided by him/her/it.

The price shall be clearly indicated on the goods or services that a business operator offers.

Article 21: A business operator shall clearly indicate his/her/its true name and mark.

A business operator that leases counters or venues of another shall clearly indicate his/her/its true name and mark.

Article 22: When offering goods or services, a business operator shall issue to consumers an invoice or other such proof of purchase or service document in accordance with relevant state provisions or commercial practice. If a consumer requests an invoice or other such proof of purchase or service document, the business operator must issue one.

Article 23: A business operator shall warrant the quality, performance, purpose and expiry date that the goods or services he/she/it offers ought to have under normal use of such goods or receipt of such services, unless the consumer was aware of the existence of a defect before the purchase of the good in question or receipt of the service in question, and such defect does not run counter to mandatory provisions of laws

A business operator that indicates the quality condition of a good or a service by way of advertisements, product descriptions, physical samples or other means shall ensure that the actual quality of the good or service provided by him/her/it is in line with the indicated quality condition.

If a consumer discovers a defect in a motor vehicle, computer, television, refrigerator, air conditioner, washing machine or other such consumer durable, or decoration, renovation or other such service provided by a business operator within six months from the date of acceptance of such good or service and a dispute arises as a result, the business operator shall bear the burden of proof in respect of the defect.

Article 24: If a good or service offered by a business operator does not meet quality requirements, the consumer may return the same in accordance with state provisions or as agreed by the parties, or demand that the business operator perform his/her/its obligation of replacement, repair, etc. In the absence of state provisions or agreement between the parties, the consumer may return the good within seven days from the date of receipt thereof. If the statutory conditions for termination of a contract are satisfied after the seven days, the consumer may return the goods in a timely manner, and if the statutory conditions are not satisfied, he/she/it may demand that the business operator perform his/her/its obligation of replacement, repair, etc.

If return, replacement or repair is carried out in accordance with the preceding paragraph, the business operator shall bear necessary expenses such as shipping.

Article 25: Where a business operator sells goods online, by television shopping, telephone sales, mail order or other such means, consumers shall have the right to return the goods, no questions asked, within seven days from the date of receipt of the goods, with the exception of the following goods:

(1) goods made to order for the consumer;

(2) fresh, live or perishable goods;

(3) digital goods, such as audio and video recordings or computer software that have been downloaded or the packaging of which the consumer has opened; and

(4) delivered newspapers or periodicals;

In addition to the goods set forth in the preceding paragraph, return with no questions asked shall not apply to other goods that, by virtue of their nature, the consumer confirmed were not suitable for return at the time of purchase.

Goods returned by a consumer shall be in good condition. The business operator shall refund the price of the goods paid by the consumer within seven days from the date of receipt of the returned goods. The shipping charges for the return of the goods shall be borne by the consumer, unless otherwise agreed by the business operator and the consumer, in which case such agreement shall apply.

Article 26: Where a business operator uses standard clauses in his/her/its business activities, he/she/it shall highlight for the consumer's attention the contents that are of material interest to the consumer, such as the quantity, quality and price of, or charges for, the goods or services, the deadline for, and method of, performance, safety instructions and risk warnings, after-sales services, civil liability, etc., and give an explanation of the same as requested by the consumer.

A business operator may not set forth provisions, by way of standard clauses, notice, declaration, in-store announcement, etc., that are unfair to consumers or unreasonable, such as provisions that deny or restrict consumers' rights, reduce or exempt the business operator's liability or increase the liability of consumers, and may not employ standard clauses or resort to technical means to coerce transactions.

If standard clauses, notices, declarations, in-store announcements, etc. contain any of the contents set forth in the preceding paragraph, such contents shall be invalid.

Article 27: A business operator may not insult or defame consumers. They may not search the body of consumers or the articles carried by them and may not infringe upon the personal liberty of consumers.

Article 28: Business operators that offer goods or services online, by television shopping, telephone sales, mail order or other such means as well as business operators that offer securities, insurance, banking and other such financial services shall provide consumers information such as their business address, contact information, the quantity, quality and price of, or charges for, the goods or services, the deadline for, and method of, performance, safety instructions and risk warnings, after-sales services, civil liability, etc.

Article 29: If a business operator wishes to collect and use the personal information of consumers, he/she/it shall comply with the principles of lawfulness, legitimacy and necessity, expressly state his/her/its objective for, and method and scope of, collection and use of the information, and secure consumers' consent therefor. A business operator that collects and uses consumers' personal information shall disclose his/her/its rules for the collection and use thereof, and may not collect and use information in violation of laws or regulations or in breach of the agreement between the parties.

A business operator and his/her/its working personnel must strictly maintain the confidentiality of the collected personal information of consumers, and may not disclose, sell or illegally provide the same to third parties. A business operator shall take technical and other necessary measures to ensure the security of information and prevent consumers' personal information being divulged or lost. Where information has been or could be divulged or lost, he/she/it shall promptly take remedial measures.

A business operator may not send information of a commercial nature to a consumer without his/her/its consent or request or if he/she/it expressly states that he/she/it does not wish to receive the same.

Part Four: State protection of the lawful rights and interests of consumers

Article 30: When the state formulates laws, regulations, rules and mandatory standards concerning the rights and interests of consumers, it shall listen to the opinions of consumers and consumers' associations.

Article 31: People's governments at every level shall strengthen their leadership, arrange, coordinate and cause relevant administrative departments to duly carry out the work involved in protecting the lawful rights and interests of consumers, and perform the duty of protecting the lawful rights and interests of consumers.

People's governments at every level shall strengthen their monitoring, prevent the occurrence of acts that jeopardise the personal and property safety of consumers and, in a timely manner, put a stop to acts that jeopardise the personal and property safety of consumers.

Article 32: Administrations for industry and commerce and other relevant administrative departments of people's governments at every level shall adopt measures, in accordance with laws and regulations and within their respective purviews, to protect the lawful rights and interests of consumers.

The relevant administrative departments shall listen to the opinions of consumers and organisations such as consumers' associations on issues concerning the transaction acts and quality of goods and services of business operators, and investigate and handle the same in a timely manner.

Article 33: Each relevant administrative authority shall, within its respective purview, conduct randomised inspections of the goods and services offered by business operators on a regular or ad hoc basis, and publicly announce the outcome of such randomised inspections in a timely manner.

If a relevant administrative authority discovers and finds that a good or service provided by a business operator contains a defect, and such defect jeopardises the safety of the person or property, it shall promptly order the business operator to take a measure such as halting the sale thereof, giving a warning, ordering a recall, processing it in such a manner as to make it harmless, destroying it or halting production thereof or the service.

Article 34: The relevant state authorities shall penalise, in accordance with laws and regulations, business operators for their illegal and criminal acts that infringe upon the lawful rights and interests of consumers in the provision of goods and services.

Article 35: People's courts shall adopt measures to facilitate the institution of legal actions by consumers. Disputes over the rights and interests of consumers that meet the conditions for instituting an action as specified in the PRC Civil Procedure Law (2nd Revision) must be accepted and tried in a timely manner.

Part Five: Consumer organisations

Article 36: Consumers' associations and other consumer organisations are social organisations established in accordance with the law that carry out social monitoring of goods and services and protect the lawful rights and interests of consumers.

Article 37: A consumers' association shall perform the following public service duties:

(1) providing consumer information and consulting services to consumers, enhancing consumers' ability to safeguard their own lawful rights and interests and leading consumption in a civilised, healthy, economical of resources and environmentally friendly direction;

(2) participating in the formulation of laws, regulations, rules and mandatory standards concerning the rights and interests of consumers;

(3) participating in the monitoring and inspection of goods and services by relevant administrative departments;

(4) reporting to, making inquiries with and making suggestions to, relevant departments on issues concerning the lawful rights and interests of consumers;

(5) accepting complaints from consumers, and investigating and mediating the subject matter of the complaints;

(6) if a complaint involves the issue of the quality of a good or service, appointing a qualified professional expert to conduct an assessment, and the professional expert shall give an assessment opinion;

(7) with respect to acts that prejudice the lawful rights and interests of consumers, supporting injured consumers in instituting legal actions or instituting legal actions in accordance herewith; and

(8) with respect to acts that prejudice the lawful rights and interests of consumers, disclosing and criticising the same in the mass media.

People's governments at every level shall give consumers' associations the funds and other such support necessary for the performance of their duties.

A consumers' association shall earnestly perform its duty of safeguarding the lawful rights and interests of consumers, listen to the opinions and suggestions of consumers and subject itself to monitoring by the public.

Other consumer organisations established in accordance with the law shall carry out their activities of protecting the lawful rights and interests of consumers in accordance with laws, regulations and their charters.

Article 38: A consumer organisation may not deal in goods or provide for-profit services, and may not recommend goods or services to consumers by charging a fee therefor or otherwise seeking gain.

Part Six: Resolution of disputes

Article 39: Consumers may resolve their disputes with business operators over their rights and interests in the following ways:

(1) negotiating a settlement with the business operator;

(2) requesting a consumers' association or another lawfully established mediation organisation to mediate;

(3) lodging a complaint to the relevant administrative department;

(4) applying to an arbitration organisation for arbitration in accordance with the arbitration agreement reached with the business operator; or

(5) instituting a legal action in a people's court.

Article 40: A consumer whose lawful rights and interests are prejudiced during the purchase or use of a good may demand compensation from the seller. Where the liability lies with the producer or another seller that provides the goods to the seller, the seller, after settling the compensation, shall have the right to recover the same from the producer or the other seller.

A consumer or other injured party whose body or property is harmed due to a defect in a good may demand compensation from the seller as well as the producer. Where the liability lies with the producer, the seller, after settling the compensation, shall have the right to recover the same from the producer. Where the liability lies with the seller, the producer, after settling the compensation, shall have the right to recover the same from the seller.

A consumer whose lawful rights and interests are prejudiced during the receipt of a service may demand compensation from the service provider.

Article 41: If a consumer's lawful rights and interests are prejudiced during the purchase or use of a good or receipt of a service and the original enterprise is divided or merged, he/she/it may demand compensation from the enterprise that takes over the rights and obligations of such enterprise after the change.

Article 42: Where an illegal business operator prejudices the lawful rights and interests of a consumer in providing goods or services by using another party's business licence, the consumer may demand compensation from such business operator as well as the holder of the business licence.

Article 43: A consumer whose lawful rights and interests are prejudiced during the purchase of a good or receipt of a service in a trade fair or at a leased counter may demand compensation from the seller of the good or the service provider. After the trade fair is finished or the lease of the counter has expired, the consumer may also demand compensation from the organiser of the trade fair or the lessor of the counter. After the organiser of the trade fair or the lessor of the counter settles the compensation, he/she/it shall have the right to recover the same from the seller of the goods or the service provider.

Article 44: If a consumer buys a good or accepts a service via an online trading platform and his/her/its lawful rights and interests are prejudiced, he/she/it may demand compensation from the seller or service provider. If the online trading platform provider is unable to provide the true name, address and valid contact information of the seller or service provider, the consumer may also demand compensation from the online trading platform provider. If the online trading platform provider gives an undertaking that is more favourable to consumers, it shall perform such undertaking. Once the online trading platform provider has paid compensation, it shall have the right to recover the same from the seller or service provider.

If an online trading platform provider is well aware or ought to have been aware that a seller or service provider was using its platform to infringe the lawful rights and interests of consumers and failed to take the necessary measures, it shall bear joint and several liability with the seller or service provider in accordance with the law.

Article 45: If the lawful rights and interests of a consumer are prejudiced as the result of a business operator using false advertising or other false publicity in offering his/her/its goods or services, he/she/it may demand compensation from the business operator. If an advertising business operator or advertisement publisher publishes a fraudulent advertisement, a consumer may petition the competent administrative department to impose sanctions. If an advertising business operator or advertisement publisher is unable to provide the true name, address and valid contact information of the business operator, it shall be liable for compensation.

If an advertising business operator or advertisement publisher designs, produces and publishes a false advertisement about a good or service that has a bearing on the life or health of consumers, causing harm to consumers, it shall bear joint and several liability with the business operator that offered the good or service.

If an association or other organisation or individual recommends a good or service to consumers in a false advertisement or other false publicity about a good or service that has a bearing on the life or health of consumers, causing harm to consumers, he/she/it shall bear joint and several liability with the business operator that offered the good or service.

Article 46: When a consumer files a complaint with a relevant administrative department, the department shall handle the same and inform the consumer within seven working days of receipt of the complaint.

Article 47: Where an act infringes the lawful rights and interests of numerous consumers, the China Consumers' Association, or the consumers' association established in the province, autonomous region or municipality directly under the central government may institute a legal action in a people's court.

Part Seven: Legal liability

Article 48: In any of the following circumstances, except where otherwise provided by this Law, a business operator that provides goods or services shall bear civil liability in accordance with other relevant laws and regulations:

(1) a defect exists in a good;

(2) a good does not possess functions it should possess, and this is not stated when such good is sold;

(3) the standards of the good indicated on a good or on the package of such good are not met;

(4) the quality condition indicated by way of descriptions of a good, physical samples, etc. is not met;

(5) goods produced has been expressly ordered be eliminated by the state or goods sold have expired or deteriorated;

(6) goods sold are not adequate in quantity;

(7) the service items and charges are in violation of the agreement;

(8) demands by a consumer for repair, redoing, replacement, return, making up the shortfall in the quantity of goods, refund of the price paid/service fee or the claim is handled with a deliberate delay or rejected without reason; or

(9) another circumstance whereby the rights and interests of consumers are prejudiced as provided by laws or regulations.

If a business operator fails to perform his/her/its obligation toward consumers of ensuring their safety, causing harm to consumers, he/she/it shall be liable for tort.

Article 49: Where a business operator offering goods or services causes bodily harm to a consumer or other injured party, he/she/it shall compensate for the reasonable expenses expended for treatment and recovery, such as medical fees, nursing fees and transportation expenses, and the reduction in income due to being absent from work. If he/she/it causes disability, he/she/it shall additionally compensate for the expenses of the aids needed to live a life with a disability and pay disability compensation. If he/she/it causes death, he/she/it shall additionally compensate for the funeral expenses and pay death compensation.

Article 50: If a business operator offends a consumer's personal dignity, infringes a consumer's personal liberty or infringes a consumer's right to have his/her personal information protected in accordance with the law, he/she/it shall halt the infringement, restore the consumer's reputation, eliminate the effect, apologise and compensate for the losses.

Article 51: If a business operator infringes a consumer's or other injured party's personal rights and interests by insulting or defaming him/her, doing a body search, infringing his/her personal liberty, etc., thereby causing serious psychological injury, the injured party may demand compensation for psychological injury.

Article 52: Where a business operator offering goods or services causes damage to the property of a consumer, he/she/it shall bear civil liability by effecting repairs, redoing, replacement, return, making up the shortfall in the quantity of goods, refunding the price paid /service fee or compensating for the losses, etc. in accordance with the law or the agreement between the parties.

Article 53: A business operator that provides a good or a service against advance payment shall provide such good or service in accordance with the agreement. If the business operator fails to do so in accordance with the agreement, he/she/it shall, at the request of the consumer, implement the agreement or refund the advance payment and bear the interest on the advance payment and reasonable expenses needed to be paid by the consumer.

Article 54: Where a consumer demands the return of a good that is verified not to be up to the standard by the relevant administrative department in accordance with the law, the business operator shall be responsible for the return of such good.

Article 55: Where a business operator offering goods or services commits fraud, he/she/it shall increase the compensation for the losses incurred by the consumer as demanded by him/her/it. The amount of such increased compensation shall be three times the price paid by the consumer to purchase the good or the charge paid for receiving the service; and if the amount of the increased compensation is less than Rmb500, it shall be set at Rmb500. If otherwise provided in law, such provisions shall apply.

If a business operator is well aware that a good or service contains a defect, but nevertheless offers it to consumers, thereby causing the death of, or serious damage to the health of, a consumer or other injured party, the injured party shall have right to demand compensation for loss in accordance with legal provisions such as Article 49 or 51 hereof and the right to demand punitive damages of up to twice the loss incurred.

Article 56: Where any of the circumstances set forth below applies to a business operator, if other relevant laws or regulations specify the penalty imposing authority and the penalty method, matters shall be handled in accordance with such laws or regulations, in addition to the business operator bearing the attendant civil liability; if laws and regulations are silent, the administration for industry and commerce or other relevant administrative department shall order him/her/it to rectify the matter and may, depending on the circumstances, give a warning, confiscate the illegal income and/or impose a fine of not less than the amount and not more than 10 times the illegal income, or if there was no illegal income, impose a fine of up to Rmb500,000, singly or all together; and if the circumstances are serious, it shall order him/her/it to halt operations to undergo rectification and revoke his/her/its business licence:

(1) the goods or services he/she/it offers do not satisfy the requirement of ensuring the personal or property safety;

(2) the goods are adulterated, mixed with improper elements or counterfeited or sub-standard goods are used in imitation of standard goods;

(3) he/she/it produced goods that the state has expressly ordered be eliminated or sold goods whose expiry dates have passed or that have deteriorated;

(4) he/she/it falsified the origin of the goods, falsified or passed off the name and/or address of another's factory, altered the production date or forged or passed off a certification mark or other such quality mark;

(5) goods subject to inspection or quarantine are sold without inspection or quarantine or inspection or quarantine results are falsified;

(6) he/she/it used false or misleading publicity for a good or service;

(7) he/she/it refused to take or delayed in taking measure in respect of a defective good or service such as halting the sale thereof, giving a warning, ordering a recall, processing it in such a manner as to make it harmless, destroying it or halting production thereof or the service as ordered by the relevant administrative department;

(8) he/she/it deliberately delayed or rejected without reason a demand made by a consumer for repair, redoing, replacement, return, making up the shortfall in the quantity of goods, refund of payment/service fee or compensation for losses;

(9) he/she/it offended a consumer's personal dignity, infringed a consumer's personal liberty or infringed a consumer's right to have his/her personal information protected in accordance with the law;

(10) anther circumstance as specified by laws or regulations whereby penalties shall be imposed for prejudice of the rights and interests of consumers applies.

If any of the aforementioned circumstances applies to a business operator, in addition to imposing penalties in accordance with laws and regulations, the penalty imposing authority shall record the same in the integrity file and make a public announcement.

Article 57: If a business operator violates this Law in offering goods or services, infringing the lawful rights and interests of consumers, and constituting a criminal offence, his/her/its criminal liability shall be pursued in accordance with the law.

Article 58: If a business operator violates this Law and is required to bear the liability for civil compensation as well as pay a fine, but his/her/its property is insufficient to pay both, he/she/it shall first bear the liability for civil compensation.

Article 59: If a business operator is dissatisfied with a penalty decision, he/she/it may apply for administrative review or institute an administrative action in accordance with the law.

Article 60: Where the personnel of a relevant administrative department are obstructed, by means such as force or intimidation, from carrying out their duties in accordance with the law, criminal liability shall be pursued in accordance with the law. Where the personnel of a relevant administrative department are rejected or obstructed, without the use of force or intimidation, from carrying out their duties in accordance with the law, penalties shall be imposed by the public security authorities in accordance with the PRC Law on the Imposition of Penalties in Connection with the Administration of Public Security.

Article 61: Personnel of state authorities who neglect their duties or shelter business operators from acts infringing the lawful rights and interests of consumers shall be subject to administrative penalties by their work unit or the authority at a higher level. Where the circumstances are serious and a criminal offence is constituted, criminal liability shall be pursued in accordance with the law.

Part Eight: Supplementary provisions

Article 62: The purchase and usage by farmers of production materials used directly for agricultural production purposes shall be handled with reference to this Law.

Article 63: This Law shall be effective as of January 1 1994.