Chinese legislature mulls consumer rights law changes

Personal information protection

The draft provides clarification on the protection of personal information, as personal information leaks have seriously affected the lives of consumers and infringed upon their legal rights.

"Consumers are entitled to have their name, portraits and privacy protected," according to the draft, adding that business owners should obtain consumers' consent and explicitly explain the purpose, form and scope of information use before collecting and using consumers' personal data.

Consumers' information should be "strictly confidential" and business owners should adopt necessary technical measures to ensure security, according to the draft.

It also stipulates that those running businesses should not send commercial information to consumers who have refused to receive such information or whose consent had not been obtained.

Such clauses on protecting personal information are in line with the legislature's decision to strengthen the Internet information protection guideline, which has legal status and was adopted last December.

Quality control

Quality of commodities and services is of obvious concern for consumers' personal safety and that of their property. "Half of the complaints received by the country's commercial departments and associations are about quality problems," Li noted.

Under the draft, conditions for the return, exchange or repair of goods are clarified.

It also highlights commercial fraud. Penalties for this should involve fines equivalent to twice the value of goods or services, with a minimum fine set at 500 yuan ($73.53), it said, adding that criminal liabilities will be pursued for those whose defective products damage consumers' health or result in death.

As China has been long plagued by rampant production and distribution of bogus goods, the amendments to the law will also target such illegalities.

The draft says business owners should immediately suspend production and sale, issue a warning and initiate a recall if they find that their products are defective and could cause harm to people or property.

To further alleviate pressure on consumers, it says, "The burden of proof is on business runners" if defects are found within six months after a product is purchased.

The draft amendments also boost the responsibility of advertisers and marketers, stressing that those who release deceptive advertisements concerning food and drugs and other goods related to consumers' lives and health are subject to joint liability with producers.

Meanwhile, the role of the government is explained in the draft, which says relevant departments should randomly inspect the quality of products and services regularly, release inspection reports, and immediately order business owners to suspend production and sale and recall defective products if the watchdog found the defects could cause harm.

The draft also says government agencies should handle consumers' complaints in a timely manner and impose heavier penalties to those acts infringing upon consumers' rights and interests.