Draft law revision targets unfair online competition

BEIJING - China highlighted proper online market competition in the latest draft revision to the Unfair Competition Law, submitted for a third reading on Tuesday.

"Fake advertising by e-commerce operators has become a serious problem, severely disturbing market order," Zhang Mingqi, vice-director of the National People's Congress (NPC) law committee, told lawmakers at the bimonthly session of the NPC Standing Committee.

The draft stipulates 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 draft read.

It 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."

The draft 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, the draft said.

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

The revision aims to address new problems emerging in the market, encourage and protect fair competition and protect the rights and interests of both business operators and consumers, he said.