CHAPTER I GENERAL PROVISIONS CHAPTER II ACTS OF UNFAIR COMPETITION CHAPTER III SUPERVISION AND INSPECTION CHAPTER IV LEGAL LIABILITY CHAPTER V SUPPLEMENTARY PROVISIONS Article 1 With a view to safeguarding the healthy development of the socialist market economy, promoting and protecting fair competition, repressing Article 2 All legal persons or other economic organizations and individuals (hereinafter referred to as business operator) that are engaged Article 3 The unfair competition referred to in these Regulations means the act or practice of a business operator in market transactions that Article 4 The industry and commerce administrations at municipal, district or county level shall exercise supervision and inspection of acts A government administrative department in charge of a trade or industrial sector and a society in charge of that may draw up a code Article 5 Government offices in Shanghai Municipality shall encourage, support and protect all organizations and individuals in the exercise Supervisory and inspection departments shall guard the secret of organizations and individuals that bring to light, report, and assist Article 6 No government officials may support, cover up or engage in unfair competition acts.
CHAPTER II ACTS OF UNFAIR COMPETITION Article 7 A business operator shall not engage in the following acts involving counterfeit registered trademark: 1. Using, without the permission of the owner of a registered trademark, a trademark that is identical with to the former on goods 2. Knowingly selling goods bearing counterfeit registered trademarks; or 3. Forging or making without authorization labels of a registered trademark of another person or selling labels of a registered trademark Article 8 A business operator shall not use without authorization the unique name, package or decoration of well-known goods or use a name, The term “well-known goods” as mentioned in the preceding clause refers to: 1. Goods that bear a certified famous or well-known trademark; 2. Goods that have won international prize that is recognized by the pertinent state administrative organs and the general society 3. Goods that are well-known to the relevant consumers, having a certain market share and a relatively high popularity. Article 9 A business operator shall not use without authorization the name of another enterprise or person or the symbol, logo, verbal expression A business operator shall not without authorization transfer or lease out to others the name of its own enterprise. A business operator shall not engage in business activities under a fraudulently assumed business name. Article 10 A business operator shall not resort to the following means with its goods or packaging so as to mislead people with fraudulent statements: 1. Counterfeiting or fraudulently using quality marks such as accreditation marks or famousbrand marks, etc., or using quality marks 2. Counterfeiting or fraudulently using patent marks, or using patent numbers that are already invalid; 3. Counterfeiting or fraudulently using quality inspection certificates, license numbers, production permit numbers or the name of 4. Counterfeiting or fraudulently using the place of production, place of manufacture or place of processing of the goods; 5. Making false statements of the performance, usage, specifications, grade, ingredients or contents of the goods; or 6. Forging dates of production, time for safe use and dates of expiring or giving blurted dates. Article 11 A public utility enterprise or other business operator that has monopoly status according to law shall not resort to the following 1. Restricting consumers to buy or use goods that are provided by it only or by a business operator designated by it and disallowing 2. Forcing consumers to buy unneeded goods or accessories that are provided by it or by a business operator designated by it; or 3. Refusing, discontinuing, delaying or decreasing the supply of necessary goods to consumers that resist the above practices or charging Article 12 Governments and their subordinate departments shall not abuse their administrative powers to restrict people to buy goods from business Governments and their subordinate departments shall not abuse their administrative powers to restrict the entry into local markets Article 13 A business operator shall not resort to bribery, by offering money or goods or by any other means, in selling or buying goods. A A business operator may, in selling or buying goods, expressly allow a discount to the other party and pay a commission to the middleman. Article 14 A business operator shall not, by using advertisement or other means, make false or misleading statements with regard to the price, The term “other means” in the preceding clause refers to the following acts: 1. Hosting false appraisals or holding out deceptive inducements to promote sale; 2. Using, on the premises, false statements, explanations or other written expression, in an attempt to mislead the customers; 3. Making false on-the-spot demonstrations and explanations in an attempt to mislead the customers; 4. Posting, distributing or mailing false goods descriptions, pictures and other types of promotional material in an attempt to mislead 5. Seeking to gain publicity through mass media in a fraudulent way in an attempt to mislead the customers. Advertising firms and advertisement issuers shall not, when they know or should know the falsity, act as agents for, design, make Article 15 A business operator shall not resort to any of the following means to infringe upon trade secrets: 1. Obtaining an obligee’s trade secrets by stealing, luring, intimidating or any other unfair means; 2. Disclosing, using or permitting others to use the trade secrets obtained from the obligee by the means mentioned in the preceding 3. In violation of an agreement or against the obligee’s demand for confidentiality, disclosing, using or permitting others to use Obtaining, using or disclosing another’s business secrets by a third party who knows or should know the act falls under the unlawful The term “trade secrets” in this article refers to any technical information or business operation information that is unknown to Article 16 A business operator shall not, for the purpose of ousting a competitor, sell goods at below-cost prices, except in one of the following 1. When selling live things; 2. When disposing of goods near expiration of their validity duration or overstocked goods; 3. When making seasonal sales; or 4. When selling goods at reduced prices for the purpose of clearing off debts, change of business, closing down or for relocation. Article 17 A business operator shall not, against the will of the purchasers, conduct tie-in sale of goods or attach any other unreasonable The term “unreasonable conditions” in the preceding clause refers to restrictions as to the price, place of sale, targeted customs, Article 18 A business operator shall not engage in any of the following prize-attached sale activities: 1. Falsely claiming that prizes will be given; 2. Using illicit means to give prizes to privately selected persons; 3. Making false statements about types of prizes, winner percentage, methods of winning, date of announcing winners, etc.; 4. Putting on the market at different times goods or lottery tickets with and without prize-winning marks, or putting on the market 5. Using prize-winning sale as a means to promote the sale of low- quality at a high price. In lottery prize-winning sale, the sum of money for the highest prize shall not exceed 5,000 yuan; in cases where the prizes are in Article 19 A business operator shall not fabricate or spread false information to injure the business reputation or goods reputation of its Article 20 Bidders shall not collude in any of the following means to infringe upon the interests of the tender-inviters or the interests of 1. Boosting or forcing down the tender price; 2. Using high tender price or low tender price to win the tender in turn; or 3. Other means that infringe upon the interests of the tender-inviters or the interests of the public. Bidders and tender-inviting parties shall not collude to push rival bidders out of the fair competition. 1. Opening tender documents without authorization to obtain information about the tender price or other terms offered by other bidders; 2. Illegally obtaining or disclosing the information that are not to be made public for the time being, such as minimum tender price, 3. Using unfair means such as bribery for discriminatory treatment against the same bidding documents in the process of examining
CHAPTER III SUPERVISION AND INSPECTION Article 21 Acts of unfair competition shall be investigated and dealt with by the supervisory and inspection departments at the municipal and Article 22 In supervising and inspecting acts of unfair competitions, the supervisory and inspection departments have the authority to exercise 1. Interrogating a business operator under investigation, interests- concerned parties and attestors and demanding that they produce 2. Making inquiries about or duplicating materials that concern acts of unfair competitions as mentioned in the preceding clause; 3. Inspecting property that is involved in acts of unfair competitions and, when necessary, ordering a business operator under investigation 4. For property involved in acts of unfair competitions, such measures as seizure, custody under seal, etc., may be taken and a decision Article 23 While the supervisory and inspection departments are proceeding with the supervision and inspection of acts of unfair competitions, Article 24 In supervising and inspecting acts of unfair competitions the staff members of the supervisory and inspection departments must show In case no certificates for investigation are shown, a business operator, concerned parties and attestors have the right to refuse. Article 25 In the course of investigating acts of unfair competitions, the supervisory and inspection departments must preserve the trade secret
Article 26 A business operator who violates the stipulations of these Regulations and causes damage to the infringed business operator is liable An infringed business operator whose legitimate rights and interests have been infringed upon may file a suit with the people’s court. Article 27 A business operator who violates the stipulations of these Regulations shall be punished by the supervisory and inspection departments 1. Those who violate Article 7 of these Regulations shall be punished in accordance with the provisions of the Mark Law of the People’s 2. Those who violate Article 8 of these regulations shall be ordered to stop the illegal acts and shall have their illegal gains confiscated, 3. Those who violate Articles 9 and 10 of these Regulations shall be ordered to make corrections in public, shall have their illegal 4. Those who violate Article 11 of these Regulations shall be ordered by the supervisory and inspection departments at the municipal 5. Those who violate Article 12 of these Regulations shall be ordered by a superior administrative department to make rectification; 6. Those who violate Article 13 of these Regulations and whose offense constitutes a criminal act shall be charged with criminal liability; 7. Those who violate Section 1 of Article 14 of these Regulations shall be ordered to stop their illegal acts and clear up the consequences 8. Those who violate Article 15 of these Regulations shall be ordered to stop their illegal acts and may be subjected to a fine of 9. Those who violate Article 16 of these Regulations shall be ordered to stop their illegal acts and may be subjected to a fine that 10. Those who violate Article 17 of these Regulations shall be ordered to stop their illegal acts, have their illegal gains confiscated 11. Those who violate Article 18 of these Regulations shall be ordered to stop their illegal acts or practices and may be subjected 12. Those who violate Article 19 of these Regulations shall be ordered to stop their illegal acts and to clear up the consequences 13. Those who violate Article 20 of these Regulations shall have their accepted tender invalidated and may be subjected to a fine 14. Those who try to obstruct the supervisory and inception departments in performing their duties as stipulated in Item 3 of Article 15. Those who try to obstruct the supervisory and inspection departments in performing their duties as stipulated in Article 23 of Those whose illegal acts are covered in Item2, Item3, Item4 or Item5 in the preceding Section but who have not derived any illegal In imposing fines in accordance with this Article, the supervisory and inspection departments must give signed receipts for money Article 28 The term “a serious case” in the Regulations refers to one of the following cases: 1. When the total turnover of illegal business exceeds 500,000 yuan or when the amount of illegal gains exceeds 50,000 yuan, but in 2. When engaging in acts of unfair competition within one year after being administratively punished for engaging in such acts; or 3. When obtaining economic gains is more than 50,000 yuan by exercising official functions and powers; 4. When causing serious economic losses to or entailing serious consequences for the party whose rights have been infringed upon. Article 29 The party concerned who finds unacceptable a specific administrative act may apply for administrative review or file a suit in accordance When a party concerned does not, within a statutorily stipulated period of time, apply for administrative review or file a suit but Article 30 Staff members of the supervisory and inspection departments must abide by law and be impartial in its enforcement. Those who neglect
CHAPTER V SUPPLEMENTARY PROVISIONS Article 31 The Shanghai Municipal Industry and Commerce Administration is responsible for the interpretation of these Regulations in their applications. Article 32 These Regulations shall become effective on December 1st,1995.
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