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| Category | TRADE ACTIVITIES | Organ of Promulgation | The Standing Committee of the National People's Congress | Status of Effect | In Force |
| Date of Promulgation | 1993-09-02 | Effective Date | 1993-12-01 |
|
Law of the People's Republic of China Against Unfair Competition |
|---|
Chapter I General Provisions
Chapter II Acts of Unfair Competition
Chapter III Supervision and Inspection
Chapter IV Legal Responsibility
Chapter V Suplementary Provisions Article 1 This Law is formulated with a view to safeguarding Article 2 A business operator shall, in his market "Unfair competition" mentioned in this Law refers to a business "A business operator" mentioned in this Law refers to a legal Article 3 People's governments at various levels shall take Administrative departments for industry and commerce of the Article 4 The State shall encourage, support and protect all No State functionary may support or cover up unfair Article 5 A business operator shall not harm his competitors (1) counterfeiting a registered trademark of another person; (2) using for a commodity without authorization a unique name, (3) using without authorization the name of another (4) forging or counterfeiting authentication marks, Article 6 A public utility enterprise or any other business Article 7 Governments and their subordinate departments shall Governments and their subordinate departments shall not abuse Article 8 A business operator shall not resort to bribery, A business operator may, in selling or purchasing commodities, Article 9 A business operator may not, by advertisement or any An advertisement agent may not act as agent for, or design, Article 10 A business operator shall not use any of the (1) obtaining an obligee's trade secrets by stealing, luring, (2) disclosing, using or allowing another person to use the (3) in violation of the agreement or against the obligee's Obtaining, using or disclosing another's trade secrets by a "Trade secrets" mentioned in this Article refer to any Article 11 A business operator shall not, for the purpose of pushing out their competitors, sell their commodities at prices Any of the following shall not be deemed as an unfair (1) selling perishables or live commodities; (2) disposing of commodities near expiration of their validity (3) seasonal sales; or (4) selling commodities at a reduced price for the purpose of clearing off debts, change of business or suspension
of operation. Article 12 A business operator may not, against the will of purchasers, conduct tie-in sale of commodities or attach any other Article 13 A business operator shall not engage in any of the (1) lottery-attached sale conducted by such deceptive means as (2) lottery-attached sale employed as a means to sell goods of low quality at a high price; or (3) lottery-attached sale in form of lottery-drawing with the Article 14 A business operator shall not fabricate or spread Article 15 Bidders shall not act in collusion with each other Bidders and tender-inviters shall not collude with each other Article 16 Supervision and inspection departments at or Article 17 Supervision and inspection departments shall, in (1) to interrogate the business operators under inspection, (2) to inquire about and duplicate the agreements, account (3) to inspect the property involved in the unfair competition Article 18 Functionaries of supervision and inspection Article 19 Business operators under inspection, interested Article 20 A business operator who violates the provisions of this Law and thus causes damage to the infringed business A business operator whose lawful rights and interests are Article 21 A business operator who counterfeits another's In case a business operator uses for a commodity without Article 22 A business operator, who resorts to bribery by Article 23 In case a public utility enterprise or any other Article 24 In case a business operator makes false and In case an advertisement agent acts as agent for, or designs, Article 25 In case a business operator violates the provisions Article 26 In case a business operator engages in Article 27 Where bidders act in collusion with each other to Article 28 In case a business operator acts in violation of the order of stopping the sale or forbidding the transfer, Article 29 In case a party is not satisfied with the Article 30 Where a government or its subordinate departments, Article 31 Where a state functionary engaged in supervision Article 32 Where a state functionary engaged in supervision Article 33 This Law shall enter into force as of December 1,
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Chapter I General Provisions
the healthy development of socialist market economy, encouraging
and protecting fair competition, repressing unfair competition
acts, and protecting the lawful rights and interests of business
operators and consumers.
transactions, follow the principles of voluntariness, equality,
fairness, honesty and credibility and observe the generally
recognized business ethics.
operator's acts violating the provisions of this Law, infringing
upon the lawful rights and interests of another business operator
and disturbing the socio-economic order.
person or any other economic organization or individual engaged in
commodities marketing or profit-making services ("commodities"
referred to hereinafter includes such services).
measures to repress unfair competition acts and create favourable
environment and conditions for fair competition.
people's governments at or above the county level shall exercise
supervision over and inspection of unfair competition acts; where
laws or administrative rules and regulations provide that other
departments shall exercise the supervision and inspection, those
provisions shall apply.
organizations and individuals in the exercise of social supervision
over unfair competition acts.
competition acts.
Chapter II Acts of Unfair Competition
in market transactions by resorting to any of the following unfair
means:
package, or decoration of another's famous commodity, or using a
name, package or decoration similar to that of another's famous
commodity, thereby confusing the commodity with that famous
commodity and leading the purchasers to mistake the former for the
latter;
enterprise or person, thereby leading people to mistake their
commodities for those of the said enterprise or person; or
famous-and-excellent-product marks or other product quality marks
on their commodities, forging the origin of their products or
making false and misleading indications as to the quality of their
commodities.
operator occupying monoply status according to law shall not
restrict people to purchasing commodities from the business
operators designated by him, thereby precluding other business
operators from fair competition.
not abuse administrative powers to restrict people to purchasing
commodities from the business operators designated by them and
impose limitations on the rightful operation activities of other
business operators.
administrative powers to restrict commodities originated in other
places from entering the local markets or the local commodities
from flowing into markets of other places.
by offering money or goods or by any other means, in selling or
purchasing commodities. A business operator who offers off-the-book
rebate in secret to the other party, a unit or an individual, shall
be deemed and punished as offering bribes; and any unit or
individual that accepts off-the-book rebate in secret shall be
deemed and punished as taking bribes.
expressly allow a discount to the other party and pay a commission
to the middleman. The business opeartor who gives discount to the
other party and pays commission to the middleman must truthfully
enter them in the account. The business operator who accepts the
discount or the commission must also truthfully enter it in the
account.
other means, make false or misleading publicity of their
commodities as to their quality, ingredients, functions, usage,
producers, duration of validity or origin.
produce or release a false advertisement while he clearly knows or
ought to know its falsehood.
following means to infringe upon trade secrets:
intimidation or any other unfair means;
trade secrets obtained from the obligee by the means mentiond in
the preceding paragraph; or
demand for keeping trade secrets, disclosing, using or allowing
another person to use the trade secrets he possesses.
third party who clearly knows or ought to know that the case falls
under the unlawful acts listed in the preceding paragraph shall be
deemed as infringement upon trade secrets.
technology information or business operation information which is
unknown to the public, can bring about economic benefits to the
obligee, has practical utility and about which the obligee has
adopted secret-keeping measures.
lower than costs.
competition act:
duration or those kept too long in stock;
unreasonable conditions to the sale of their commodities.
following lottery-attached sale activities:
falsely declaring prize or intentionally making a person designated
inside win the prize;
highest prize exceeding 5,000 yuan.
false information to injure his competitors' commercial credit or
the reputation of his competitors' commodities.
so as to force up or down the bidding prices.
so as to push out their competitors from fair competition.
Chapter III Supervision and Inspection
above the county level may carry out supervision over and
inspection of unfair competition acts.
supervising and inspecting unfair competition acts, have the right
to exercise the following functions and powers:
interested persons, or witnesses in accordance with the prescribed
procedures, and require them to provide testimonial materials or
other materials relating to the unfair competition acts;
books, invoices, documents, records, business letters and
telegrammes or other materials relating to the unfair competition
acts; and
acts under Article 5 of this Law; and, when necessary, to order the
business operators under inspection to explain the source and
quantity of the commodities, suspend the sale and await the
inspection thereof, and the property involved shall not be
transferred, concealed or destroyed.
departments shall, when supervising and inspecting unfair
competition acts, produce their inspection certificates.
persons and witnesses shall truthfully provide relevant materials
or particulars when the supervision and inspection departments
supervise and inspect unfair competition acts.
Chapter IV Legal Responsibility
operators, shall bear the liability of compensation for the damage.
If the losses of the infringed business operator are difficult to
estimate, the damages shall be the profits derived from the
infringement by the infringer during the period of infringement.
And the infringer shall also bear the reasonable expense paid by
the infringed business operator for investigating the infringer's
unfair competition acts violating his lawful rights and interests.
infringed upon by unfair competition acts may bring a suit in a
people's court.
registered trademark, uses without authorization the name of another enterprise or person, forges or counterfeits authentication
marks, famous-and-excellent-product marks or other product quality
marks, forges origin of the products or makes false and misleading
indications regarding the product quality shall be punished in
accordance with the provisions of the Trademark Law of the People's
Republic of China and the Law of the People's Republic of China on
Product Quality.
authorization the name, package or decoration of a famous commodity
or the name, package or decoration similar to that of a famous
commodity and thereby confuses the commodity with another's famous
commodity and leads the purchasers to mistake the former for the
latter, the supervision and inspection department shall order the
business operator to stop the illegal act and confiscate the
illegal earnings and may, in light of the circumstances, impose a
fine of not less than one time but not more than three times the
illegal earnings; if the circumstances are serious, his business
licence may be revoked; and if the commodities sold are fake and
inferior, and the case constitutes a crime, he shall be
investigated for criminal responsibility according to law.
offering money or goods or by any other means in selling or
purchasing commodities and if the case constitutes a crime, shall
be investigated for criminal responsibity according to law; if the
case does not constitute a crime, the supervision and inspection
department may impose a fine of not less than 10,000 yuan but not
more than 200,000 yuan in light of the circumstances and confiscate
the illegal earnings, if any.
business operator occupying monopoly status according to law
restricts people to purchasing commodities from a designated
business operator in order to push out other business operators
from fair competition, the supervision and inspection departments
at the provincial level or of cities divided into districts shall
order the cease of the illegal acts and may impose a fine of not
less than 50,000 yuan but not more than 200,000 yuan in light of the circumstances. If such designated business operator takes
advantage thereof to sell goods of low quality at high prices or
indiscriminately collects fees, the inspection and supervision
department shall confiscate the illegal earnings and may impose a
fine of not less than one time but not more than three times the
illegal earnings in light of the circumstances.
misleading publicity of his commodities by advertisement or any
other means, the supervision and inspection department shall order
the said business operator to stop his illegal acts and eliminate
the bad effects, and may impose a fine of not less than 10,000 yuan
but not more than 200,000 yuan in light of the circumstances.
produces or releases a false advertisement though the agent clearly
knows or ought to know the falsehood, the supervision and
inspection department shall order the cease of the illegal acts,
confiscate the illegal earnings, and impose a fine according to
law.
of Article 10 of this Law and infringes upon trade secrets, the
supervision and inspection department shall order the cease of the
illegal acts and may impose a fine of not less than 10,000 yuan but
not more than 200,000 yuan in light of the circumstances.
lottery-attached sale in violation of the provisions of Article 13
of this Law, the supervision and inspection department shall order
the cease of the illegal acts and may impose a fine of not less
than 10,000 yuan but not more than 100,000 yuan in light of the
circumstances.
force up or down the bidding price, or a bidder colludes with a
tender-inviter for the purpose of pushing out their competitors,
the successful bid shall be invalid, and the supervision and
inspection department may impose a fine of not less than 10,000
yuan but not more than 200,000 yuan in light of the circumstances.
concealment or destruction of the property involved in the unfair
competition acts, the supervision and inspection department may
impose a fine of not less than one time but not more than three
times the price of the property sold, transferred, concealed or
destroyed.
punishment decision made by the supervision and inspection
department, it may apply for reconsideration to the competent
department at the next higher level within 15 days from receipt of the decision; and if the party is still not satisfied with the
reconsideration decision, it may bring a suit in a people's court
within 15 days from receipt of the decision; and the party may also
directly file a suit in a people's court.
in violation of the provisions of Article 7 of this Law, restrict
people to purchasing commodities from a designated business
operator or impose limits on other business operator's rightful
operation activities or the normal circulation of commodities
between different areas, the supervision and inspection department
at higher levels shall order them to make corrections; and if the
circumstances are serious, the persons held directly responsible
shall be given administrative sanctions by the relevant department
at the same or higher level; if the designated business operator
takes advantage thereof to sell goods of low quality at high prices
or indiscriminately collects fees, the supervision and inspection
department shall confiscate the illegal earnings and may impose a
fine of not less than one time but not more than three times the
illegal earnings in light of the circumstances.
over and inspection of unfair competition acts abuses his power or
neglects his duty, and if the case constitutes a crime, he shall
be investigated for criminal responsibility according to law; if
the case does not constitute a crime, he shall be given an
administrative sanction.
over and inspection of unfair competition acts practices
favouritism or irregularities and intentionally harbours a business
operator whom he clearly knows to be guilty of a crime by violating
the provisions of this Law and attempts to shield him from
prosecution, he shall be investigated for criminal responsibility
according to law.
Chapter V Supplementary Provisions
1993.
URL: http://www.asianlii.org/cn/legis/cen/laws/ucl224