Consumer rights law to give higher payouts
A BILL to revise the law on consumer rights tabled yesterday for a third reading, promises higher compensation for consumer loss.
The bill was submitted to the bimonthly session of the Standing Committee of the National People’s Congress, China’s top legislature, which runs until Friday.
Lawmakers read the bill in April and August and are likely to vote on it this week.
The current version contains an article endorsing higher compensation for consumers who die or suffer serious health problems due to faulty products knowingly sold by dealers.
Dealers shall not only compensate consumers for economic and psychological losses but also pay punitive damages up to a maximum of twice the amount of the loss, according to the bill. Offenders will also be prosecuted.
The bill bans dealers from forcing consumers to buy or imposing unfair and unreasonable conditions, and further clarifies regulations on e-commerce, protecting the rights of both consumers and businesses.
Though the bill allows online shoppers to unconditionally return merchandise for refunds within seven days of a transaction, it also requires them to pay logistics costs.
The draft expands the list of products not suitable for unconditional returns. Digital products sold via downloads have been added to the list, which already includes audio-visual products with packaging removed, bespoke products, perishable goods, magazines, newspapers and software.
Consumers can seek compensation from online trading platforms if the platforms fail to provide valid contact details for vendors. After compensating consumers, online trading platforms are entitled to claim compensation from vendors.
The consumer rights law has not been revised since it was enacted in 1993.
At panel discussions yesterday afternoon, most lawmakers agreed that the bill has addressed the latest and most important problems — such as online shopping — and focused on protecting consumer rights, tightening the liabilities of businesses and improving supervision.
“The bill has been well established and should be ready for a vote after this round of deliberation,” said Shen Chunyao, member of the NPC Standing Committee.
At yesterday’s session, lawmakers also reviewed a draft amendment to the environmental protection law and a report on the implementation of meteorological law.
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