Background -

On September 2, 1993, the Third Session of the Standing Committee of the Eighth National People’s Congress (NPC) passed the Anti-Unfair Competition Law (AUCL). On November 4, 2017, the Thirtieth Session of the Standing Committee of the Twelfth NPC passed the Amendments to the Anti-Unfair Competition Law (Amended AUCL or New Law), marking the first time that the AUCL underwent a major revision since its enactment 24 years ago. The amendments underscore the government’s efforts to strengthen the rule of law in the increasingly complex marketplace that has transcended traditional boundaries to include ecommerce and cyberspace. We discuss the key revisions of the Amended AUCL below (Revision).

Analysis and Takeaways -

Greater emphasis on consumer protection -

The Amended AUCL retains the general principle of promoting order and fairness in the marketplace while adding consumer protection as a focus of the new law. While the Amended AUCL continues to place an emphasis on the overarching principle of upholding order and fairness in the marketplace, Article 2 of the Amended AUCL (the General Provision) stipulates that “unfair competition,” as defined by the new law, encompasses conduct that infringes the legitimate rights and interests of other business operators or the consumers. The Revision reflects the government’s recognition that the ultimate victims of unfair competition are often the general public who end up paying the costs of illegitimate market practices such as commercial bribery.