CHAPTER ONE GENERAL PROVISIONS CHAPTER TWO ACTIVITIES OF UNFAIR COMPETITION CHAPTER THREE SUPERVISION CHAPTER FOUR LEGAL RESPONSIBILITY CHAPTER FIVE SUPPLEMENTARY ARTICLES Chapter One General Provisions Article 1 This law is drawn up in order to safeguard the healthy development of the socialist market economy, encourage and protect fair market Article 2 Managers shall abide by the principle of voluntariness, equality, impartiality, honesty and good faith, and also adhere to public “Unfair competition”, in this Law, means activities made by managers who damage the others’ legal rights and interests, disturbe the “Manager”, in this Law, means the legal person, the other economic organisations and individuals who deal with commercial business Article 3 The governments in all levels shall adopt methods to prohibit unfair competition and to create the sound environment and conditions The Bureaus of Industrial and Commercial Management of the People’s Government over the county level supervise unfair competition, Article 4 The State shall encourage, support and safeguard all organisations and individuals to carry out social supervising for unfair competition. Officials in the State organs should not support or shield unfair competition. Chapter Two Activities of Unfair Competition Article 5 Managers should not use the following unfair methods in their business transactions which can damage other competitors: 1. to feign the others’ registered trade mark; 2. to use the specific name, package, decoration of the famous or noted commodities, or use a similar name, package, decoration of 3. to use the name of other enterprise or personal name and make people confuse this commodity to the other’s commodity; 4. to feign or pretend to be the certificate of attestation, mark of fame and high qualification, to feign the certificate of originally Article 6 Public facility enterprises or the other enterprises which legally monopolized the special market in accordance with law shall not Article 7 The government and its organ shall not abuse its authority to force the others to purchase the commodities from the pointed seller Article 8 Managers shall not use money or properties or the other methods to bribe to others in order to sell or purchase commodities. It shall Managers may offer a discount to the others in public, or may pay commission to the middle man in selling or purchasing commodities. Article 9 Managers shall not use advertisement or the other methods to make a false propaganda for the quality, composition, function, usage, Advertising company shall not be an agent of, or design, or make, or propagandize false advertisement, if it know or should know the Article 10 Managers shall not use the following methods to infringe upon business secrecy: 1. to steal, coerce, or use any other unfair method to obtain the other’s business secrets; 2. to disclose, use or permit others to use the business secrets mentioned in Section 1 of this Article. 3. to violate the contract or the requirement to publish, use or permit others to use the business secrets, which were maintained The third party who knows or should know the illegal activities as first mentioned, and who gains, uses or publishes the business “Business secrecy”, in this Article, means the utilized technical information and business information which is unknown by the public, Article 11 Manager shall not sell commodity at the price lower than the commodity’s cost in order to put the other competitors out of the competition. Any of the following activities shall not be looked as unfair competition: 1. to sell fresh or live commodities; 2. to quickly sell commodities before their expiration or the other overstock commodities; 3. to cut prices or on sale in season; 4. to cut prices to sell commodity for cleaning debts, changing or suspending business. Article 12 Manager shall not sell commodity attached with unreasonable condition or force the consumers to unwillingly purchase any additional Article 13 Manager shall not sell commodity with lottery ticket such as the following activities: 1. to sell commodity by the way of making fake award or arranging inside person to win the lottery; 2. to sell unqualified or high prices commodity by the way of awarding selling; 3. to sell commodity with lottery award which the top award is more than 5000 RMB yuan. Article 14 Manager shall not fabricate, spread false facts to damage the business reputation or commodity fame of the other competitor. Article 15 Bidder shall not act in collusion for bidding, not raise or reduce the price for bidding. Bidder shall not collude with the company that is offering to bid in order to put the other bidders out of the competition. Chapter Three Supervision Article 16 The supervising authority over the county’s administration may carry out the supervision to activities of unfair competition. Article 17 The supervising authorities has following powers in the supervision: 1. Require manager, connected person, testified person in due process and require them to supply testified material or the other documents 2. Require, copy agreements, accounting books, vouchers, documents, records, business fax or letters and the other materials with 3. Check commodities or properties with regarding to the activities of unfair competition under the provision of the Article 5 of Article 18 Supervisor shall show the certificate of supervision when he carries out the supervision to activities of unfair competition. Article 19 Under the supervision of the activities of unfair competition, manager, connected person and testified person shall supply the related Chapter Four Legal Responsibility Article 20 Manager shall bear the responsibility for compensating to the damage made by damager to the damaged party under the violation of The damaged party may bring law suit to the People’s Court when its legal interests and rights are damaged. Article 21 Manager shall be punished in accordance with the Law of Trade Mark of the People’s Republic of China and the Law of Supervision on The supervisor shall order to stop the illegal activities, confiscate the illegal income, and also fine amount from one to three times Article 22 Manager bribe by giving money or properties or using any other method in order to sell or purchase the commodities and violate the Article 23 Manager of public facility enterprise or the other enterprises with a legal monopoly position force others to purchase the commodities The supervisor may confiscate illegal income, and may fine amount from one to three times of illegal income, if the pointed manager Article 24 The supervisor shall order to stop the illegal activities, clear up the bad influence, may fine amount from more than 10,000 to less Supervisor shall order to stop the illegal activities, confiscate illegal income and fine in accordance with the law, if the manager Article 25 Supervisor shall order to stop the illegal activities, may fine amount from more than 10,000 to less than 200,000 RMB yuan, if manager Article 26 Supervisor shall order to stop illegal activities, and may fine amount from more than 10,000 to less than 100,000 RMB yuan, if manager Article 27 If bidders act in collusion, raise or reduce the price of the bid; and bidder and invite tender ganged up in order to put the others Article 28 If the manager violate this Law regarding to the order to stop selling, moving, hiding, eliminating the commodities related to unfair Article 29 If the party refuses to accept the fine decisionmade by supervisor may apply the senior supervisor to reexamine the case within 15 Article 30 If the government or its departments violate Article 7 of this Law to force the others to purchase the commodities from the pointed Article 31 Official of the supervisor of unfair competition who abuse of power, negligence, commit on criminal guilty shall be punished by the Article 32 Official of the supervisor for unfair competition shall be punished by the Criminal Law, if he is fraudulent, or illegally shields Chapter Five Supplementary Articles Article 33 This law shall become effective on December 1,1993.
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