Official Reply of the State Administration of Industry and Commerce to Issues concerning the Determination of Acts of Unfair Competition in Prize-Attached Promotions

Official Reply of the State Administration of Industry and Commerce to Issues concerning the Determination of Acts of Unfair Competition in Prize-Attached Promotions

Gong Shang Gong Zi [1999] No.79

April 5, 1999

Beijing Administration of Industry and Commerce,

Your Request for Instructions on the Issues concerning the Determination of an Enterprise Using Prize-attached Sales to Conduct Unfair Competition in Promotions (Jing Gong Shang Wen Zi [1999] No.34) (hereinafter referred to as the "Request") has been received. Upon discussion, an official reply is hereby made as follows:

The Anti-unfair Competition Law provides that an operator shall not engage in prize-attached sales in the form of lucky draws where the highest prize exceeds CNY5,000 at value, with the intentions to prohibit operators from using consumers' speculative psychology to induce them to make market selection, and encourage and urge operators to conduct fair competition in terms of quality, price and service, so as to maintain the market competition order.
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