· Document Number：Announcement No. 4 [2018] of the State Administration for Market Regulation

· Area of Law： Anti-Unfair Competition

· Level of Authority： Departmental Regulatory Documents

· Date issued：05-14-2018

· Effective Date：05-14-2018

· Issuing Authority： All Administrations

· Status： Effective

Announcement of the State Administration for Market Regulation on Conducting the Key Action of Law Enforcement in Anti-Unfair Competition
(No. 4 [2018])
The revised Anti-Unfair Competition Law has officially come into force on January 1, 2018. For the purposes of comprehensively implementing the spirit of the 19th CPC National Congress, further promoting the implementation of the Anti-Unfair Competition Law and creating a market environment for fair competition, the State Administration for Market Regulation has decided to conduct the key action of law enforcement in anti-unfair competition nationwide from May to October in 2018. The law enforcement action shall focus on the rectification of market confusion, commercial bribery, false publicity, Internet-related unfair competition and other prominent problems which attract high social concern and generate strong response mainly in such industries and fields as online trading, rural market, medicine and education, effectively maintain the fair competition market order and safeguard the lawful rights and interests of business operators and consumers.
I. Focusing on the investigation and handling of unfair competition acts infringing upon intellectual property rights such as market confusion and infringement upon trade secrets, and strengthening property right protection.
Legal basis: Articles 6, 9, 18 and 21 of the Anti-Unfair Competition Law and other provisions.
Key fields: strengthening the protection of leading enterprises in the industry, well-known trademarks, influential trade names, and trade secrets of technology-intensive enterprises, among others. Focusing on market confusion, false publicity and other acts in such areas as rural markets and urban-rural fringe areas, and centering on such commodities as daily necessities, goods in department stores and alcoholic drinks.
Key actions: using without permission a label identical with or similar to the name, packaging, or decoration, among others, of another person's commodity with certain influence; using without permission another person's enterprise name (including abbreviation, trade name, among others) with certain influence; and using another person's registered trademark in the enterprise name, which misleads the public and constitutes unfair competition.
II. Focusing on the investigation and handling of commercial bribery acts in medicine and education fields, and purifying the market environment
Legal basis: Articles 7 and 19 of the Anti-Unfair Competition Law and other provisions.
Key fields: the industries and fields that involve broad aspects and are closely related to the people's livelihood such as the purchase and sale of medicine (medical devices), education, public enterprises and institutions.
Key actions: seeking transaction opportunities or competitive edges by bribing with property or by any other means an employee of the other party to a transaction, an entity or individual entrusted by the other party to a transaction to handle relevant affairs, an entity or individual that uses power or influence to affect a transaction.
III. Focusing on the investigation and handling of false publicity acts in the Internet field and maintaining a fair competition order
Legal basis: Articles 8 and 20 of the Anti-Unfair Competition Law.
Key fields: “fake orders and ratings” in the Internet field, false honor ratings of commodities or business operators, false publicity acts in the field of direct marketing, and false publicity in the field of health care products.
Key actions: A business operator conducts any false or misleading commercial publicity in respect of the performance, functions, quality, sales, user reviews, and honors received of its commodities, in order to defraud or mislead consumers. A business operator helps another business operator conduct any false or misleading commercial publicity by organizing false transactions or any other means.
IV. Strengthening social governance and building a fair and orderly market competition environment
In production and business operation activities, business operators shall follow the principles of free will, equality, fairness, and good faith, and abide by laws and business ethics. They shall enhance the awareness of protecting their own intellectual property rights, and if they find any suspected act of unfair competition, shall fully utilize legal weapons to protect their lawful rights and interests. They shall earnestly conduct self-examination and self-correction, consciously correct the violations of law existing in the course of business operation, and realize business operation in accordance with the law and in good faith.
Industry organizations shall maximize their important role in promoting standardized development of the industry, and establish and improve industry self-disciplinary conventions and codes of professional ethics. They shall strengthen industry self-discipline, direct and regulate the lawful competition of members, and maintain the market order.
All walks of life and consumers shall file complaints and reports on market confusion, commercial bribery, false publicity, illicit premium sale, commercial defamation, infringement upon trade secrets, Internet unfair competition and other acts suspected of violating the Anti-Unfair Competition Law with local administrative departments for industry and commerce and market supervision and administration, and strengthen social supervision and social governance, so as to jointly create a fair and impartial business environment.
State Administration for Market Regulation
May 14, 2018