The Chinese Law on the Protection of Consumer’s Right and Interests Under Revision - The Most Important Innovations at a Glance

Abstract

China’s consumer code is due for an update. A number of innovations to the current law are being discussed for an upcoming draft, including the right of revocation, data protection and class actions.

Even though the PRC Protection of the Rights and Interests of Consumers Law (中华人民共和国消费者权益保护法) (Consumer Code) was enacted 1994, less than two decades later, the legal framework for consumer protection in China is in part outdated and incomplete due to the rapid economic growth and social change in the PR China.

Consumer protection issues in today’s China are more vital than ever. The liberalization of its market has enabled consumers almost all over the country to benefit from the seemingly unlimited supply of products. An increasingly wealthy Chinese society has resulted in a steep rise in demand for consumer products, while to date consumer protection has not been able to keep pace with the rapid economic development. New business practices and technologies have challenged the limits of existing laws and have accordingly necessitated new regulatory approaches. Currently, a draft of the new Consumer Code is being discussed. It addresses a diversity of topics, such as data protection, right of revocation, punitive damages, class action, simplified arbitration proceedings, appreciation of a conciliatory proceeding, etc. This article will discuss the main innovations of the draft.

Keywords: consumer law, class action, protection, contract

JEL Classification: K29, K39, K49