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Anti-Unfair Competition Law of the People's Republic of China

Anti-Unfair Competition Law of the People's Republic of China

(Adopted at the third meeting of the Standing Committee of the Eighth National People's Congress on September XNUMX, XNUMX, and promulgated by the Order No. XNUMX of the President of the People's Republic of China on September XNUMX, XNUMX, it will come into force on December XNUMX, XNUMX)

Chapter One General Provisions
Chapter II Acts of Unfair Competition
Chapter III Supervision and Inspection
Chapter IV Legal Liability
Chapter XNUMX Supplementary Provisions

Chapter One General Provisions

Article XNUMX This Law is formulated for the purpose of ensuring the healthy development of the socialist market economy, encouraging and protecting fair competition, preventing acts of unfair competition, and protecting the legitimate rights and interests of business operators and consumers.
Article XNUMX In market transactions, business operators shall follow the principles of voluntariness, equality, fairness, good faith and generally recognized business ethics.
The term "unfair competition" as mentioned in this Law refers to the behavior of business operators in violation of the provisions of this Law, damaging the lawful rights and interests of other business operators, and disrupting the social and economic order.
Business operators as mentioned in this Law refer to legal persons, other economic organizations and individuals engaged in commodity business or profit-making services (hereinafter referred to as commodities include services).
Article XNUMX People's governments at all levels shall take measures to stop unfair competition and create favorable environment and conditions for fair competition.
The administrative department for industry and commerce of the people's government at or above the county level shall supervise and inspect acts of unfair competition; if laws and administrative regulations provide that supervision and inspection by other departments shall be followed, such provisions shall be followed.
Article XNUMX The state encourages, supports and protects all organizations and individuals to conduct social supervision over unfair competition.
Staff of state organs shall not support or cover up acts of unfair competition.

Chapter II Acts of Unfair Competition

Article XNUMX Operators shall not engage in market transactions by the following illegitimate means and harm competitors:
(XNUMX) Counterfeiting the registered trademark of others;
(XNUMX) Using the unique name, packaging and decoration of well-known commodities without authorization, or using names, packaging and decoration similar to well-known commodities, causing confusion with others' well-known commodities and making buyers mistakenly believe that it is the well-known commodity;
(XNUMX) Unauthorized use of another person's enterprise name or name, leading people to mistakenly believe that it is another person's goods;
(XNUMX) Forging or falsely using quality marks such as certification marks and famous and excellent marks on commodities, forging the origin, and making misleading false representations about the quality of commodities.
Article XNUMX A public utility enterprise or other operators with exclusive status according to law shall not restrict others to purchase the commodities of the operators designated by them, in order to crowd out the fair competition of other operators.
Article XNUMX The government and its subordinate departments shall not abuse administrative power to restrict others from purchasing the commodities of the operators designated by them, and restrict the legitimate business activities of other operators.
The government and its subordinate departments shall not abuse administrative power to restrict the entry of foreign goods into the local market, or the flow of local goods to the foreign market.
Article XNUMX Operators shall not use property or other means to bribe to sell or buy commodities.Those who secretly give kickbacks to the counterparty unit or individual outside the account shall be punished as offering bribes; where the counterparty unit or individual secretly accepts kickbacks outside the account book, it shall be punished as accepting bribes.
When an operator sells or buys a commodity, he can expressly give the other party a discount, and can give a commission to the middleman.If the operator gives the other party a discount or a commission for the middleman, it must be recorded truthfully.Operators who accept discounts and commissions must truthfully record them.
Article XNUMX Operators shall not use advertisements or other methods to make misleading and false propaganda about the quality, production ingredients, performance, use, producer, validity period, origin, etc. of commodities.
The operators of advertisements shall not act as agents, design, produce or publish false advertisements when they know or should know.
Article XNUMX Operators shall not infringe commercial secrets by the following means:
(XNUMX) Obtaining the commercial secrets of the right holder by theft, inducement, coercion or other improper means;
(XNUMX) Disclosing, using or allowing others to use the business secrets of the right holder obtained by the means in the preceding paragraph;
(XNUMX) Disclosing, using or allowing others to use the trade secrets they have in their possession, in violation of the agreement or the rights holder's requirements for keeping business secrets.
Obtaining, using or disclosing the trade secrets of others, knowingly or should have known about the illegal acts listed in the preceding paragraph, shall be regarded as infringement of trade secrets.
The term “trade secrets” as mentioned in this article refers to technical information and business information that are not known to the public, can bring economic benefits to the obligee, are practical and have been kept secret by the obligee.
Article XNUMX Operators shall not sell commodities at prices lower than cost for the purpose of crowding out competitors.
Any of the following circumstances is not an act of unfair competition:
(XNUMX) selling fresh and live commodities;
(XNUMX) Dealing with commodities whose validity period is about to expire or other backlogged commodities;
(XNUMX) Seasonal price reduction;
(XNUMX) Selling commodities at reduced prices due to repayment of debts, conversion of production, or closure of business.
Article XNUMX When selling commodities, operators shall not tie the commodities against the wishes of the buyers or attach other unreasonable conditions.
Article XNUMX Operators shall not engage in the following sales with prizes:
(XNUMX) Selling with prizes by falsely claiming to have prizes or by deliberately letting an unspecified person win prizes;
(XNUMX) Using the means of rewarded sales to promote commodities of inferior quality and high price;
(XNUMX) In the lottery-style sales with prizes, the maximum prize amount exceeds XNUMX yuan.
Article XNUMX Operators shall not fabricate or spread false facts and damage the commercial reputation and commodity reputation of competitors.
Article XNUMX The bidders shall not collude in bidding, raise the bid price or lower the bid price.
Bidders and tenderers shall not collude with each other in order to crowd out the fair competition of competitors.

Chapter III Supervision and Inspection

Article XNUMX Supervision and inspection departments at or above the county level may conduct supervision and inspection of acts of unfair competition.
Article XNUMX Supervision and inspection departments shall have the power to exercise the following functions and powers when supervising and inspecting acts of unfair competition:
(XNUMX) Inquiring the operators, interested parties and witnesses under inspection in accordance with the prescribed procedures, and requesting the provision of supporting materials or other materials related to unfair competition;
(XNUMX) Inquiring and duplicating agreements, account books, bills, documents, records, business correspondence and other materials related to acts of unfair competition;
(XNUMX) To inspect the property related to the acts of unfair competition stipulated in Article XNUMX of this Law, and if necessary, order the operator under inspection to explain the source and quantity of the commodity, suspend sales, wait for inspection, and not transfer, conceal or destroy the property. property.
Article XNUMX When supervising and inspecting acts of unfair competition, the staff of the supervision and inspection department shall present their inspection certificates.
Article XNUMX When the supervision and inspection department supervises and inspects acts of unfair competition, the operators, interested parties and witnesses under inspection shall truthfully provide relevant materials or information.

Chapter IV Legal Liability

Article XNUMX If an operator violates the provisions of this Law and causes damage to the infringed operator, he shall be liable for compensation for the damage. If the loss of the infringed operator is incalculable, the amount of compensation shall be the amount of compensation obtained by the infringer due to the infringement during the infringement period. and shall bear the reasonable expenses paid by the infringed business operator for investigating the business operator's unfair competition behavior that infringes upon its legitimate rights and interests.
If the legitimate rights and interests of the infringed business operators are damaged by the acts of unfair competition, they may file a lawsuit in the people's court.
Article XNUMX Where a business operator counterfeits another's registered trademark, uses another's enterprise name or name without authorization, forges or falsely uses quality marks such as certification marks, famous and excellent marks, forges the place of origin, or makes false representations of the quality of commodities that are misleading, Punishment in accordance with the "Trademark Law of the People's Republic of China" and "Product Quality Law of the People's Republic of China".
If the operator uses the unique name, packaging and decoration of the well-known commodity without authorization, or uses the name, packaging and decoration similar to the well-known commodity, which causes confusion with the well-known commodity of others and makes the buyer mistakenly believe that it is the well-known commodity, the supervision and inspection department shall The illegal act shall be ordered to stop, the illegal income shall be confiscated, and a fine of not less than one time but not more than three times the illegal income may be imposed according to the circumstances; if the circumstances are serious, the business license may be revoked; if the sale of fake and shoddy commodities constitutes a crime, criminal responsibility shall be investigated according to law.
Article XNUMX If an operator uses property or other means to bribe to sell or purchase commodities, if a crime is constituted, criminal responsibility shall be investigated according to law; if a crime is not constituted, the supervision and inspection department may impose a fine of not less than XNUMX yuan but not more than XNUMX yuan according to the circumstances. fines, and any illegal gains shall be confiscated.
Article XNUMX Where a public utility enterprise or other operator with a monopoly position according to law restricts others to purchase the commodities of the operator designated by it in order to crowd out the fair competition of other operators, the supervision and inspection department at the provincial level or the city divided into districts shall Orders to stop illegal acts may, according to the circumstances, impose a fine of not less than XNUMX yuan but not more than XNUMX yuan.If the designated operator sells inferior commodities with high price or charges excessive fees, the supervision and inspection department shall confiscate the illegal income, and may impose a fine of not less than one time but not more than three times the illegal income according to the circumstances.
Article XNUMX If a business operator uses advertisements or other methods to make misleading and false propaganda about commodities, the supervision and inspection department shall order the cessation of the illegal act, eliminate the impact, and may impose a fine of not less than XNUMX yuan but not more than XNUMX yuan according to the circumstances. fine.
If an advertising operator, knowingly or ought to know, acts as an agent, designs, produces, or publishes false advertisements, the supervision and inspection department shall order it to stop the illegal act, confiscate the illegal gains, and impose a fine according to law.
Article XNUMX For those who violate the provisions of Article XNUMX of this Law and infringe on commercial secrets, the supervision and inspection department shall order the cessation of the illegal act, and may impose a fine of not less than XNUMX yuan but not more than XNUMX yuan according to the circumstances.
Article XNUMX If a business operator violates the provisions of Article XNUMX of this Law to conduct sales with prizes, the supervision and inspection department shall order it to stop the illegal act, and may impose a fine of not less than XNUMX yuan but not more than XNUMX yuan according to the circumstances.
Article XNUMX If the bidders collude in bidding, raise the bid price or lower the bid price; if the bidder and the tenderee collude with each other to crowd out the fair competition of the competitors, the bid is invalid.The supervision and inspection department may impose a fine of not less than XNUMX yuan but not more than XNUMX yuan according to the circumstances.
Article XNUMX If an operator violates the order to suspend sales and shall not transfer, conceal or destroy the property related to the act of unfair competition, the supervision and inspection department may impose the price of the sold, transferred, concealed or destroyed property according to the circumstances. More than one time and less than three times the fine.
Article XNUMX If a party is not satisfied with the punishment decision made by the supervision and inspection department, he may apply for reconsideration to the competent authority at the next higher level within XNUMX days from the date of receipt of the punishment decision; File a lawsuit in the people's court within XNUMX days from the date of filing a lawsuit; or directly file a lawsuit with the people's court.
Article XNUMX If the government and its subordinate departments violate the provisions of Article XNUMX of this Law by restricting others to purchase the commodities of the operators designated by them, restricting the legitimate business activities of other operators, or restricting the normal circulation of commodities between regions, the higher-level The organ shall order it to make corrections; if the circumstances are serious, the organ at the same level or a higher level shall impose administrative sanctions on the persons directly responsible.If the designated operator sells inferior commodities with high price or charges excessive fees, the supervision and inspection department shall confiscate the illegal income, and may impose a fine of not less than one time but not more than three times the illegal income according to the circumstances.
Article XNUMX State functionaries who supervise and inspect acts of unfair competition abuse their powers and neglect their duties, and if a crime is constituted, they shall be investigated for criminal responsibility according to law; if a crime is not constituted, they shall be given administrative sanctions.
Article XNUMX If the staff of state organs who supervise and inspect acts of unfair competition practice favoritism and fraud, and deliberately cover up business operators who clearly know that they have violated the provisions of this law and constitute a crime, they shall be investigated for criminal responsibility according to law.

Chapter XNUMX Supplementary Provisions

Article XNUMX This Law shall come into force on December XNUMX, XNUMX.

Original text: http://www.gov.cn/banshi/2005-08/31/content_68766.htm

The purpose of reprinting in this article is to disseminate legal popularization purposes, so that more business operators and practitioners can better understand unfair competition, avoid unfair competition, and protect their rights from unfair competition through laws.

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