21:03, 04-Nov-2017
Anti-Unfair Competition Law: Phony trade expressly forbidden in 3rd draft amendment
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China's Anti-Unfair Competition Law was promulgated in 1993. Passed at that time, it is now quite obsolete and hard to accommodate China's rapidly developing economy. The third draft amendment adds laws prohibiting phony trade and details what is false propaganda.
It means that operators shall not help other operators make false or misleading commercial propaganda, through falsifying transaction record.
Meanwhile, operators shall not make false or misleading commercial propaganda, such as falsified sales of commodities and customer reviews. This illegal activity not only exists in online purchasing platforms as well as the service industry, but also in emerging sectors like the sharing economy.
In 2015, there were more than 680 websites providing phony trade services, with over 200 billion yuan in capital flows that year. More than 20 million people participated in relevant activities, resulting in more than 600 billion yuan's worth of products and value.