The national directorate of market supervision has recently published the regulation on coding and prohibition of price fraud (hereinafter referred to as " the regulation " ), which will become effective on 1 july. In order to better understand the legislative purpose of the regulations and to obtain an accurate picture of the content of the regulations, the relevant officials of the directorate-general for the supervision of the national market have interpreted the provisions of the regulations. In response to the need for law enforcement practice and in response to new features in the digital economy, the relevant officials indicated that the regulation had added a provision on the price behaviour of network traders and that the price fraud determination rules had been further refined to make price fraud findings more scientifically sound。
Provision of principles for network transactions
The officer-in-charge stated that the diversification of the consumer landscape created new requirements for price regulation enforcement, particularly in the digital economy, where the manner in which operators bid, price fraud, and the sub-linee economy are presented are very different, more complex and new features. In order to meet the needs of law enforcement practice, and in response to new features in the digital economy, the regulations include provisions on price behaviour of network traders and, depending on the circumstances, an exemption clause on conduct that is not appropriate for recognition as price fraud. At the same time, the circumstances in which the penalty may be reduced, reduced or waived by law are specified。
The regulation provides, in part, that the operator should be true and accurate in setting the price, be affixed to the mark, and empowers the local market regulator to specify special circumstances in which the price may not be specified. The elimination of the system of price tagging provided that operators could use a variety of effective forms to price clearly. With regard to the content of the bid, it is stipulated that the operator shall sell the goods by identifying such elements as the name, price and unit of measure of the commodity, that the provision of the service shall indicate the service line, the content and price of the service, or the method of valuation, and that there shall be a provision in principle for the sale of the goods, including through the internet, or for the provision of the services in the new industry。
The rules on price comparison and price fraud explicitly list prohibited price fraud in part, emphasizing the need for genuine and accurate price comparison information, specifying the manner in which discounts, discounts are prohibited, making specific requirements for promotion in the form of gifts and providing in principle for price behaviour by network traders. At the same time, exemptions from price fraud are provided。
Don't over-restrict the price of the code
The officer-in-charge explained that the specified price was the act of the operator to publicly mark the price, in accordance with the law, during the sale, acquisition and provision of goods. A clear price cannot be simply understood as a price indication, but the operator should also indicate other information closely related to the price, minimize information asymmetries, give consumers and other operators a clearer idea of the value of the goods or services to which the price corresponds and reduce the incidence of price fraud。
Price fraud is the act of an operator using false or misleading price instruments to lure consumers or other operators into dealing with them. Price fraud is a deceptive price expression whereby the operator engages consumers and other operators in dealings against their true will, through false or misleading price instruments, to the detriment of the legitimate interests of consumers and other operators。
Article 7 of the regulations provides that the operator shall sell the goods by indicating the name, price and unit of measure of the goods and that the provision of the services shall indicate the service line, the content and price of the services or the method of valuation. Of these, services are valued in units of measure and in standards of valuation. Depending on the actual operating situation, the operator may, on his or her own initiative, add other information such as price-related features, service standards, settlement methods, etc。
Article 9 of the regulations regulates the language and currency used by the operator to price the specified price, requiring the operator to indicate the price, and generally to use an arabic numeral to indicate the amount of the renminbi, and other price information to be indicated in a standard chinese word, and to ensure the accurate transmission of price information in accordance with his or her business needs, using foreign language. Operators of national self-governing areas may decide, on their own initiative, to increase the use of one or more local languages. It is important to note that the operator should also implement special provisions if there are special requirements in law and administrative regulations for the form of the bid。
The officer-in-charge stated that, except where the laws, regulations and regulations were clear, the manner in which the operator would bid should not be unduly restricted as long as it ensured that the price was true and accurate, that the goods were signed and clearly marked. With the development of business models, a wide range of individualized pricing methods, such as tags, model displays, electronic screens, have been accepted by consumers, and a strict price-fixing and monitoring system for operators is no longer necessary。
In order to fully perform the function of efficient transmission of price information, article 12 of the regulations further refines the form of the specified price by providing that the operator may choose to use price tags (including electronic price tags), price tags, price lists (books), display boards, electronic screens, physical or model displays of goods, photo displays and other effective forms. Financial, transport, health and other services that provide multiple services can be priced in the form of electronic search systems。
At the same time, the officer-in-charge stated that it was neither scientific nor necessary to require that goods and services be priced in a uniform format. In the case of rural fairs, auctions, etc., where prices are determined through consultations, competitive bidding, etc., it is not necessary to apply strict coded prices. In other cases, however, such as the frequent trade in food commodities in the main food-producing areas, local market regulators may, taking into account the actual situation, require operators to clearly indicate the type, specification, grade and purchase price of food in order to better protect the legitimate interests of both buyers and sellers。
It is worth noting that, in order to better promote and regulate the healthy development of the new business, article 13 of the regulations provides for a more flexible form of internet-coded pricing, making it clear that operators selling goods or providing services, for example, through the internet, should do so through web pages, using clearly-coded prices in words, images, etc。
Identification of 7 typical price frauds
The officer-in-charge indicated that article 19 of the regulations, based on legislative and enforcement experience, listed seven typical price frauds, namely: falsely denominated prices of goods and services as government-pricing or government-directed prices; low-priced inducements to consumers or other operators to settle at higher prices; sales of goods or services through false discounts, discounts or price comparisons; fraudulently, misleading language, text, numbers, pictures or videos used to mark prices and other price information when selling goods or providing services; unjustified refusals or incomplete compliance with price commitments; failure to indicate or significantly weaken price conditions to the detriment of consumers or other operators to induce consumers or other operators to trade with them; and denial of agreed discounts in the case of discounts through credits such as credits, coupons, coupons, vouchers, vouchers, etc. In view of the variety of means of price fraud, which makes it difficult to give an exhaustive list, article 19, paragraph (viii), provides for “other price fraud” as a background clause。
Article 21 of the regulations provides for three categories of cases that are not price fraud: first, where the operator has evidence sufficient to show that there was no subjective intent; second, where the actual transaction price allows the consumer or other operator with whom the transaction is conducted to obtain a greater price preference; and third, where the actual discount, the reduction and the indicated amount are not fully consistent with the transaction habits of round-the-sum。
In addition, in order to highlight the price advantages of their goods or services, the operator may deliberately lure consumers into dealing with them by concealing special conditions that increase the burden on consumers or detract from their interests, without marking or significantly weakening the label. For example, a hotel claims to sell a dish at a discount, but only when the consumer is told to “at least meet the minimum level of consumption” in order to benefit from the discount. Such conduct by the operator is an expression of non-labelling or significant weakening of price conditions to the detriment of consumers and is price fraud prohibited by the regulations。
For more details, see the chinese food newspaper (ed. 03, 0706, 2022)
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