On October 31, the third version of the Anti-Unfair Competition Law (revised draft) was submitted to the Standing Committee of National People’s Congress for review. In comparison with the previous draft, the revised draft refines the definition of unfair competition acts and strengthens the supervision on click farming online and offline shill.
It is noted that the revised draft makes a number of adjustments, for example, the definition of unfair competition is further refined, which includes the acts that violate the Anti-Unfair Competition Law, disturb market order and impair the legitimate rights and interests of other operators or consumers.
In addition, the revised draft also rules that operators shall not make false or misleading commercial propaganda regarding product performance, function, quality, sales status, customer reviews and awards. Organizing false transactions or helping operators with misleading propaganda is also forbidden. It is pointed out that false transaction refers to the frequent acts of click farming in e-commerce and has seriously disturbed market order. A fine of not less than 200,000 Yuan and not more than 1,000,000 Yuan may be imposed on these acts. If the circumstances are serious, a fine of not less than 1,000,000 Yuan and not more than 2,000,000 Yuan may be imposed, and the business license may be revoked.