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PROVISIONS ON ADMINISTRATIVE PENALTY AGAINST PRICE-RELATED UNLAWFUL PRACTICES

    Article 1  These Provisions are formulated according to the relevant provisions of the Price Law of People's Republic of China (hereinafter referred to as Price Law) in order to penalize price-related unlawful practices according to law and protect lawful rights and interests of consumers and operators.

    Article 2  The competent price control departments of the people's governments at or above the county level shall conduct supervision and inspection on price-related activities according to law, and make decides on the administrative penalties against price-related unlawful practices.

    Article 3  Administrative penalties against price-related unlawful practices shall be decided by the competent price control departments of the local people's governments at the places where the price-related unlawful practices take place; if the competent price control department of the State Council stipulates that the administrative penalties shall be decided by the competent price control departments at higher levels, such stipulations shall prevail.

    Article 4  If an operator, in violation of the provisions of Article 14 of the Price Law, commits any one of the following acts, he shall be ordered to make corrections, have his illegal earnings confiscated, and may also be fined not more than five times the illegal earnings; if there are no illegal earnings, he shall be given a warning, and may also be fined not less than 30,000 yuan nor more than 300,000 yuan; if the circumstances are serious, he shall be ordered to suspend the business for rectification, or have his business license revoked by the administrative department of industry and commerce:  

    (1) colluding with others and control the market price, which impairs the lawful rights and interests of other operators and consumers.

    (2) except the sale of fresh goods, seasonal commodities or old stock at reduced price according to law, dumping at price lower than cost in order to elbow out competitors or monopolize the market, which disturbs the normal order of production and operation and impairs the rights and interests of the state and other operators.

    (3) in providing the same commodities or services, carrying out price discrimination against other operators with the same trade terms.

    Article 5  An operator, in violation of the provisions of Article 14 of the Price Law, who forces up prices and pushes the prices of commodities to rise too highly by fabricating and spreading price- rising information, or inveigling consumers or other operators to transact with him by employing fake or misleading price instruments, shall be ordered to make corrections, have his illegal earnings confiscated, and may also be fined not more than five times the illegal earnings; if there are no illegal earnings, he shall be given a warning, and may also be fined not less than 20,000 yuan nor more than 200,000 yuan; if the circumstances are serious, he shall be ordered to suspend the business for rectification, or have his business license revoked by the administrative department of industry and commerce.

    Article 6  An operator, in violation of the provisions of Article 14 of the Price Law, who raises or depresses prices in disguised forms by selling or buying commodities or providing services by the means of driving up or down the rank, shall be ordered to make corrections, have his illegal earnings confiscated, and may also be fined not more than five times the illegal earnings; if there are no illegal earnings, he shall be given a warning, and may also be fined not less than 10,000 yuan nor more than 100,000 yuan; if the circumstances are serious, he shall be ordered to suspend the business for rectification, or have his business license revoked by the administrative department of industry and commerce.

    Article 7  An operator who commits any one of the following acts by failing to implement government guided prices or government fixed prices shall be ordered to make corrections, have his illegal earnings confiscated, and may also be fined not more than five times the illegal earnings; if there are no illegal earnings, he may be fined not less than 20,000 yuan nor more than 200,000 yuan; if the circumstances are serious, he shall be ordered to suspend the business for rectification:

    (1) setting down prices in excess of the floating range of government guided prices;

    (2) setting down prices higher or lower than government fixed price;

    (3) laying down prices for commodities or services the price of which are falling into the range of government guided prices or government fixed prices without any authorization;

    (4) advancing or postponing the implementation of government guided prices or government fixed prices;

    (5) laying down charging items or standards for charges by himself;

    (6) increasing charging standards in disguised forms such as disintegrating charging items, charging repeatedly and widening charging range;

    (7) continuing to charge fees on the items that the government has abolished by formal decree;

    (8) in violation of provisions, charging fees in disguised forms such as cash deposit or mortgage;

    (9) providing services and charging fees in compulsion or in disguised compulsion forms;

    (10) providing services not in conformity with provisions but charging fees;

    (11) other acts not implementing the government guided prices or government fixed prices.

    Article 8  An operator who does not implement legal price intervention measures or emergency measures and commits any one of the following acts shall be ordered to make corrections, have his illegal earnings confiscated, and may also be fined not more than five times the illegal earnings; if there are no illegal earnings, he may be fined not less than 40,000 yuan nor more than 400,000 yuan; if the circumstances are serious, he shall be ordered to suspend the business for rectification:

    (1) not excreting the system of price-raising declaration or of price-adjusting record;

    (2) exceeding the range of price difference ratio or profit ratio;

    (3) not implementing the prescribed check price or lowest protective price;

    (4) not implementing the measure for centralizing price-setting authorities;

    (5) not implementing the measure for freezing prices;

    (6) other acts not implementing legal price intervention measures or emergency measures;

    Article 9  If the operator mentioned form Article 4 to Article 8 is an individual, he may be fined not more than 50,000 yuan for his price-related unlawful practices without any illegal earnings.

    Article 10  An operator, in violation of laws or regulations, who makes exorbitant profits shall be ordered to make corrections, have his illegal earnings confiscated, and may also be fined not more than five times the illegal earnings; if the circumstances are serious, he shall be ordered to suspend the business for rectification, or have his business license revoked by the administrative department of industry and commerce.

    Article 11  An operator who, in violation of the provisions on clear marking of prices, commits any one of the following acts shall be ordered to make corrections, have his illegal earnings confiscated, and may also be fined not more than 5,000 yuan:

    (1) not marking prices;

    (2) not marking prices according to prescribed contents and forms;

    (3) selling commodities at overcharged prices in addition to marked prices, or charging unmarked fees;  

    (4) other acts violating the provisions on clear marking of prices.

    Article 12  Those who refuse to provide information that is necessary in price supervision and inspection or provide fake information shall be ordered to make corrections and given a warning; if no corrections are made by the expiration of the time limit, they may be fined not more than 50,000 yuan, the persons in charge directly responsible and the other directly responsible persons shall be imposed disciplinary sanctions.

    Article 13  If the illegal activities of an operator are found to possess the following three conditions at the same time during price supervision and inspection, the competent price control departments under governments may order him to suspend the related business according to the provisions of Sub-paragraph 3 of Article 34 of the Price Law:

    (1) the circumstances of the illegal activities are complex and serious, which may be given comparatively severe punishment upon investigation;

    (2) the illegal activities will continue if the related business is not suspended;

    (3) the illegal activities may influence the confirmation of the illegal facts and other measures can not guarantee the inspection if the related business is not suspended.

    When the competent price control departments under governments conduct price supervision and inspection, the law enforcement officials shall not be less than two, and they shall show their credentials to the operators or persons concerned.

    Article 14  Operators causing consumers or other operators to pay more money because of their price-related unlawful practices shall be ordered to have it returned within the time limit; and they shall be ordered to look for consumers or operators paying more money by publishing an announcement; the money that cannot be returned by the expiration of the time limit of the announcement shall be regarded and handled as illegal earnings.

    Article 15  Operators falling under the conditions listed in Article 27 of the Administrative Penalty Law shall be punished lightly or given a lighter punishment according to law.

    Under any one of the following circumstances, operators shall be punished with severity:

    (1) the price-related unlawful practices are serious or have great social influence;

    (2) they are found in violation provisions in every inspection;

    (3) forging, altering, transferring or destroying proofs;

    (4) transferring the capital or commodities related to the price-related unlawful practices;

    (5) other price-related unlawful practices that shall be punished with severity.

    Article 16  If an operator disagrees with the punishment decision made the competent price control department under government, he shall firstly make an application for administrative reconsideration according to law; if he disagrees with the administrative reconsideration decision, he may file a suit in the people's court.

    Article 17  If the fine is not paid by the expiration of the time limit, an additional fine shall be imposed at a rate of 3% the amount of the fine per day; if the illegal earnings is not paid by the expiration of the time limit, an additional fine shall be imposed at a rate of 0.2% the amount of the illegal earnings per day.

    Article 18  As for the units and individuals that commit price-related unlawful practices listed in these Provision, if the circumstances are serious and they refuse to make corrections, in addition to the punishments that shall be imposed upon them according to these Provisions, the competent price control departments under governments may make public their price-related unlawful practices at their business places till they make corrections.

    Article 19  Price law enforcement officials disclosing State secrets or operators' commercial secrets, or abusing their powers, neglecting their duties, practising favoritism for personal interests shall be investigated for criminal liabilities according to law if crimes are constituted; if no crimes are constituted, administrative sanctions shall be imposed upon them according to law.

    Article 20  These Provisions take effect as of the date of promulgation.