Comments Sought on the Anti-Unfair Competition Law of the People's Republic of China (Draft Amendments)

Comments Sought on the Anti-Unfair Competition Law of the People's Republic of China (Draft Amendments)
Comments Sought on the Anti-Unfair Competition Law of the People's Republic of China (Draft Amendments)

February 26, 2017

The 26th Meeting of the Standing Committee of the 12th National People's Congress has conducted its deliberation of the Anti-Unfair Competition Law of the People's Republic of China (Draft Amendments). The Draft Amendments are hereby published on the National People's Congress website and the public can directly visit www.npc.gov.cn to post comments, or send comments by post to the Commission of Legislative Affairs under the National People's Congress Standing Committee (Address: No. 1 Qianmen West Street, Xicheng District, Beijing; Post code: 100805. Please state on the envelope that the opinions are for the Anti-Unfair Competition Law of the People's Republic of China (Draft Amendments)). The period for comment will end on March 25, 2017.

Anti-Unfair Competition Law of the People's Republic of China (Draft Amendments)

Chapter I General Provisions

Article 1 This Law is formulated with a view to safeguarding the healthy development of the socialist market economy, encouraging and protecting fair competition, preventing acts of unfair competition, and protecting the lawful rights and interests of business operators and consumers.

Article 2 A business operator shall, in transactions in the market, follow the principles of voluntariness, equality, fairness, and good faith, and observe generally recognized business ethics.
For the purpose of this Law, unfair competition refers to any act of engaging in market transactions by improper means in violation of the preceding provision by a business operator that infringes upon the lawful rights and interests of another business operator and disrupting competition order.
A business operator refers to a natural or legal person or any other economic organization engaged in the trading of commodities or profit-making services ("commodities" referred to hereinafter include such services).

Article 3 People's governments at various levels shall take measures to prevent acts of unfair competition and create favorable environment and conditions for fair competition.
The State Council shall establish an anti-fair competition work coordination mechanism, study and decide on major anti-fair competition polices, coordinate and deal with major issues concerning maintaining competition order.

Article 4 The department responsible for administration for industry and commerce under a people's government at or above the county level or above (hereinafter referred to as the "administrative authority for industry and commerce") shall investigate and deal with acts of unfair competition. Where laws or administrative regulations provide that any act shall be subject to the investigation and handling of another department, those provisions shall apply.

Article 5 The State encourages, supports and protects all organizations and individuals in the exercise of social supervision over acts of unfair competition.
Staff members of State organs shall not support or cover up acts of unfair competition.

Chapter II Acts of Unfair Competition

Article 6 A business operator shall not engage in market transactions by adopting the following improper means:
1. unauthorized use of the unique name, packaging or decoration of a well-known commodity, or use of a name, packaging or decoration similar to that of a well-known commodity, thereby confusing his commodity with that well-known commodity and causing others to mistake his commodity for the well-known commodity of another;
2. unauthorized use of the business name, shortened name, or trade name of another business, or the name, pen name, or stage name of another person, or the name or shortened name of a social organization, thereby causing others to mistake his commodity for that of another;
3.
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