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UPDATED: April 23, 2013
Chinese Legislature Mulls Changes to Consumer Rights Law
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China's top legislature on Tuesday began reading draft amendments to the consumer rights law, marking the first time changes have been considered for the law that took effect 20 years ago.

"Consumption patterns, structure and concepts in China have undergone great changes over the past two decades, and new problems have emerged in the field of consumer rights protection," said Li Shishi, director of the Legislative Affairs Commission of the National People's Congress (NPC) Standing Committee.

While briefing national lawmakers during a three-day bimonthly legislative session that opened Tuesday, Li said amending the law aims to improve the protection of consumers' rights and interests, boost consumer confidence and promote "rational consumption that should be energy-efficient and environmentally-friendly."

The consumer rights law, which was enacted in 1993, has played a key role in "protecting consumers' interests, maintaining economic and social order and promoting the healthy development of the socialist market economy," he said.

Under the draft amendments, the role of consumers' associations and supervision over consumer rights protection will be further strengthened in order to prevent consumer disputes, Li said.

The draft clarifies 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 the rights of name, portrait and privacy," 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 information.

Consumers' personal information should be "strictly confidential" and business owners should adopt necessary technical measures to ensure information 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.

The quality of commodities and services concerns consumers' personal and property safety. "Half of the complaints received by the country's commercial departments and associations are about quality problems," Li said.

Under the draft, conditions for the return, exchange or repair of goods are clarified in order to ensure the quality of commodities and services.

The draft also highlights commercial fraud. Penalties for commercial fraud 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 the 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 of their products, issue a warning and recall products 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.

(Xinhua News Agency April 23, 2013)



 
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