China revises law to protect fair competition

BEIJING -- China's top legislature Saturday adopted a revision to its law against unfair competition.

The legislation was adopted after a third reading at the bimonthly session of the Standing Committee of the National People's Congress (NPC), which runs Monday to Saturday.

"The revision will better address new problems emerging in the market, and protect the rights and interests of both business operators and consumers," said Yang Heqing, an official of the NPC Standing Committee, at a news conference on Saturday.

"Proper online market competition is one of the highlights of the revision," said Yang Hongcan, director of the division of anti-monopoly and anti-unfair competition law enforcement with the State Administration for Industry and Commerce.

The law states that e-commerce operators should neither deceive nor mislead consumers by faking sales volume or user comments.

"Operators shall not fabricate transactions to help others in commercial promotions," the revision says.

"We kept an inclusive and prudent attitude when revising the law because we need to uphold a fair market order while encouraging innovations in the field of the internet," Yang Hongcan said.

"Adopted before the world's biggest one-day online shopping festival which falls Nov 11, the law will better regulate online shopping and maintain a fair market order," he said.

The revision redefines unfair competition as that which "violates this law, disturbs market order or infringes on the rights and interests of other operators or consumers during production and operations."

It also states that industrial associations shall uphold market order through self-discipline and by guiding their members to compete in accordance with law.

Officials of supervision and inspection departments shall not disclose any commercial secrets of the entities they investigate, it said.

The current law took effect in 1993. The revision had undergone two readings by the legislature in February and August.

"The law is more mature after three readings and it will better safeguard consumers' rights," said Yang Zhen, a committee member.

The revised law will come into force on Jan 1, 2018.