Decision of the Standing Committee of the National People's Congress on Amending the Law of the People's Republic of China on the Protection of Consumer Rights and Interests

Decision of the Standing Committee of the National People's Congress on Amending the Law of the People's Republic of China on the Protection of Consumer Rights and Interests

Order of the President of the People's Republic of China No.7

October 25, 2013

The Decision of the Standing Committee of the National People's Congress on Amending the Law of the People's Republic of China on the Protection of Consumer Rights and Interests, adopted at the Fifth Session of the Standing Committee of the 12th National People's Congress of the People's Republic of China on October 25, 2013 (hereinafter referred to as the "Decision"), is hereby promulgated for implementation as of March 15, 2014.

Xi Jinping, President of the People's Republic of China

It is decided at the Fifth Session of the Standing Committee of the 12th National People's Congress to amend the Law of the People's Republic of China on the Protection of Consumer Rights and Interests as follows:

I. A new paragraph is added as Paragraph 3 of Article 5 and reads: "The State advocates ways of consumption that are civilized and healthy and help the conservation of resoruces and environmental protection and opposes wasteful behavior."

II. Article 14 is amended to read: "A consumer is, while purchasing or using goods or receiving services, entitled to the respect for his personal dignity, national customs and traditions and the protection of his personal information according to the law."

III. Paragraph 1 of Article 16 is revised to read: "Business operators shall, in their provision of goods and services to consumers, fulfill their obligations stipulated in the Law and other relevant laws and regulations."
A new paragraph is added as Paragraph 3 and reads: "Business operators shall, in their provision of goods or services to consumers, respect social morality, operate in good faith and safeguard the legitimate rights and interests of consumers. Business operators shall neither set unfair or unreasonable terms of transaction nor force consumers to receive goods or services."

IV. A new paragraph is added as Paragraph 2 of Article 18 and reads: "Business operators that operate in such places of business as hotels, shopping malls, restaurants, banks, airports, bus stations, harbors and movie theaters shall be obligated to protect the safety of consumers."
Paragraph 2 is amended as Article 19: "Business operators, upon discovery of serious defects in the goods or services they supply which may endanger personal or property safety, shall immediately report the matter to the relevant administrative departments and inform the consumers of the same, and take measures such as ceasing sales, giving warnings, recalling, making harmless disposals of or destroying the relevant goods, stopping production or the provision of services. If measures are taken to recall goods, the business operators concerned shall bear the necessary expenses incurred by consumers as a result thereof."

V. Article 19 is renumbered as Article 20 and Paragraph 1 thereof is revised to read: "Business operators shall provide consumers with truthful and full information concerning the quality, performance, purpose and term of validity of the goods or services they provide, and shall not make any false and misleading statements."
Paragraph 3 thereof is revised to: "Business operators shall mark clearly the prices of the goods they provide."

VI. Article 21 is renumbered as Article 22, in which "proof of purchases or receipt of services" is revised to read "proof of purchases or receipt of services such as invoices".

VII. Article 22 is renumbered as Article 23 and "unless consumers are aware of the defects before they buy the goods or receive the services" in Paragraph 1 thereof is amended to read: "unless the consumer has been aware of the defect before he buys the goods or receives the service and the defect does not violate the mandatory provisions of laws".
A new paragraph is added as Paragraph 3 and reads: "Where disputes arise due to a defect found by a consumer in the durable goods or decoration services provided by the business operator such as motor vehicle, computer, television, refrigerator, air conditioning and washing machine within six months from the date when he receives the goods or service, the business operator shall bear the burden of proof with respect to the defect in question."

VIII. Article 23 and Article 45 are revised and combined to become Article 24 which reads: "Where the goods or service provided by a business operator does not comply with the quality requirements, the consumer may return the goods, or require the business operator to perform its obligations such as replacement or repair according to the requirements of the State or agreement between the parties.
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