Chapter V Penalty Provisions
Article 49 Any producer or seller that produces or sells products not up to the relevant national or sectoral standards for ensuring human health, personal safety and safety of property shall be ordered to discontinue production or sale of such products, the products illegally produced or ready for sale shall be confiscated, he shall be fines a sum equal to the amount of but not more than three times the value of the products illegally produced or ready for sale (including those already sold and those not yet sold, the same hereinafter); the illegal gains, if any, shall also be confiscated; if the circumstances are serious, the business license shall be revoked; if a crime is constituted, criminal responsibility shall be investigated according to law.
Article 50 Where a producer or a seller mixes impurities or imitations into a product, or substitutes a fake product off as a genuine one, or a defective product for a quality one, or passes a substandard product off as an up-to-date one, he shall be ordered to discontinue production or sale, the products illegally produced or for sale shall be confiscated, he shall be fined not less than 50 percent of but not more than three times the value of the products illegally manufactured or ready for sale; the unlawful earnings, if any, shall be confiscated; if the circumstances are serious, the business license shall be revoked; if a crime is constituted, criminal responsibility shall be investigated in accordance with law.
Article 51 Any producer that produces products which are eliminated by State orders or any seller that sells products which are eliminated and the sale of which is stopped by State orders shall be ordered to discontinue production or sale of such products, the products illegally produced or for sale shall be confiscated, and a fine not more than the value of the products illegally produced or for sale shall be imposed; the illegal gains, if any, shall be confiscated; if the circumstances are serious, the business license shall be revoked.
Article 52 Any seller that sells expired or deteriorated products shall be ordered to discontinue sale, the products for illegal sale shall be confiscated, and fine not more than twice the value of the products for illegal sale shall be imposed; the illegal gains, if any, shall be confiscated; if the circumstances are serious, the business license shall be revoked; if a crime is constituted, criminal liability shall be investigated in accordance with law.
Article 53 Anyone producer or seller that forges or fraudulently uses another producer’s name and address, or forges or fraudulently uses authentication marks or other product quality marks shall be ordered to rectify, the products illegally produced or for sale shall be confiscated, a fine not more than the value of the products illegally produced or for sale shall be imposed; the illegal gains, if any, shall be confiscated; if the circumstances are serious; the business license shall be revoked.
Article 54 Where the marks of a product do not conform to the provisions of Article 27 of this Law, the producer or seller concerned shall be ordered to make rectification. Where the marks on a packed product do not conform to the provisions of sub-paragraphs (4) and (5) of Article 27 of this Law, if the circumstances are serious, the producer or seller concerned shall be ordered to discontinue production or sale of such products, and a fine not more than 30 percent of the value of the products illegally produced or for sale shall be imposed; the illegal gains, if any, shall be confiscated.
Article 55 A seller who sells products prohibited for sale as specified in the provisions from Article 49 to Article 53 of this Law presents sufficient evidence to show that he is ignorant of the fact that sale of the products is prohibited and gives true information about the source of the products may be given lighter or mitigated punishment.
Article 56 Any producer or seller that refuses to undergo supervision and inspection over product quality conducted in accordance with law shall be given a disciplinary warning and be ordered to rectify; if he refuses to rectify, he shall be ordered to discontinue operation for overhaul; if the circumstances are especially serious, his business license shall be revoked.
Article 57 Any product quality inspection institution or authentication body that forges an inspection result or issues an unauthentic certificate shall be ordered to rectify and be fined not less than 50,000 yuan but not more than 100,000 yuan, the persons who are directly in charge and the other persons who are directly responsible shall be fined not less than 10,000 yuan but not more than 50,000 yuan; the illegal gains, if any, shall be confiscated; if the circumstances are serious, the inspection institution or authentication body shall be disqualified for the job; if the a crime is constituted, criminal responsibility shall be investigated in accordance with law. Any product quality inspection institution or authentication body that issues an untruthful inspection result or certificate and thus causes losses shall bear liability of compensation for the same amount of losses caused; if major losses are caused, the inspection institution or the authentication body shall be disqualified for the job. Where a product quality authentication body that, in violation of the provisions of the second paragraph of Article 21 of this Law, fails to demand, as required by law, rectification with respect to a product which is not up to the standards for authentication but on which the authentication mark is used, or disqualify the product from using the mark, if losses are caused to consumers due to the fact that the product is not up to standard, the said body shall bear joint and several liability with the producer and the seller; if the circumstances are serious, the authentication body shall be disqualified for the job.
Article 58 Where a public organization or an intermediary agency undertakes to guarantee the quality of a product, if the product is not up to the quality standard as guaranteed and losses are caused to consumers, it shall bear joint and several liability with the producer and the seller of the product.
Article 59 Where false advertisements regarding product quality are published to cheat or mislead consumers, the advertiser shall be investigated for legal responsibility in accordance with the Advertisement Law of the People’s Republic of China.
Article 60 The raw and supplementary material, packaging material and production tools specially used for the production of products as mentioned in Articles 49 and 51 of this Law or for the production of fake products shall be confiscated.
Article 61 Where a person who knows or should know that the manufacture or sale of a product is prohibited by this Law offers conveniences for the transportation, keeping and storage of such product, or offers technologies for the manufacture of the products, all his earnings therefrom shall be confiscated, and he shall be fined not less than 50 percent of but not more than three times the unlawful earnings; if a crime is constituted, he shall be investigated for criminal responsibility.
Article 62 Any operator in the service industry who uses in services the products prohibited for sale, as mentioned in the provisions from Articles 49 to Article 52 of this Law, shall be ordered to discontinue their use; those who know or should know that sale of the products they use is prohibited by this Law shall be punished in accordance with the provisions of this Law for the punishment of the seller of such products and on the basis of the value of the illegally used products (including those all ready used and those not yet used).
Article 63 Anyone who conceals, moves to other places, sells or destroy goods sealed up or seized by departments for supervision over product quality or administrative departments for industry and commerce shall be fined not less than the amount of but not more than three times the value of the said goods; the illegal gains, if any, shall be confiscated.
Article 64 If the property of a person who violates the provisions of this Law and who therefore shall bear the civil liability of compensation and is required to pay a fine, is insufficient for paying both the compensation and the fine, such person shall first bear the civil liability of compensation.
Article 65 Functionaries of the people’s governments at various levels or of State organs who commit any of the following acts shall be given administrative sanctions an accordance with law; if the act constitutes a crime, criminal responsibility shall be investigated an accordance with law:
(1) shielding or conniving at violations of this Law committed in the process of manufacture or sale of products;
(2) divulging information to the parties who engage in production or sale activities in violation of the provisions of this Law and helping them to evade investigation and handling; or
(3) obstructing or interfering in the investigation and handling of the violations of this Law committed in the process of manufacture and sale of products conducted by departments for supervision over product quality or administrative departments for industry and commerce, and thus causing serious consequences.
Article 66 If a department for supervision over product quality, when conducting random checking, asks for samples in excess of the specifies amount or charges fees from the inspected, it shall be ordered by the department for supervision over product quality at a higher level or the supervisory organ to return the extra samples or the fees; if the circumstances are serious, the persons who are directly in charge and the other persons who are directly responsible shall be given administrative sanctions in accordance with law.
Article 67 If a department for supervision over product quality or any other State organ, in violation of the provisions of Article 25 of this Law, recommends to the public a manufacturer’s product, or participates in business activities in the form of supervision over the manufacture or sale of products, it shall be ordered by its superior or the supervisory organ to rectify to offset the negative effect, and its unlawful earnings, if any, shall be confiscated; if the circumstances are serious, the persons who are directly in charge and the other persons who are directly responsible shall be given administrative sanctions in accordance with law. If a product quality inspection institution commits the illegal activities mentioned in the preceding paragraph, it shall be ordered by the department for supervision over product quality to rectify to offset the negative effect, and its unlawful earnings, if any, shall be confiscated and it may also be fined not more than the amount of its unlawful earnings; if the circumstance are serious, it shall be disqualified for quality inspection.
Article 68 Any functionary of the department for supervision over product quality or of the administrative department for industry and commerce who abuses his power, neglects his duty, or engages in malpractices for personal gains, if a crime is constituted, shall be investigated for criminal responsibility in accordance with law; otherwise he shall be given administrative sanctions in accordance with law.
Article 69 Anyone who obstructs, by means of violence or intimidation, functionaries of the departments for supervision over product quality or of the administrative departments for industry and commerce from performing their duties according to law shall be investigated for criminal responsibility in accordance with law; anyone who prevents or obstructs, without resorting to violence or intimidation, the said functionaries from performing their duties shall be punished by the public security organs in accordance with the provisions of the Regulations on Administrative Penalties for Public Security.
Article 70 An administrative sanction involving revocation of business license, as provided for in this Law, shall be decided by the administrative department for industry and commerce, and the administrative sanctions, as provided for in the provisions from Articles 49 to Article 57 and in Articles 60 to 63, shall be decided by the department for supervision over product quality or the administrative department for industry and commerce within the scope of their functions and powers prescribed by the State Council. Where laws or administrative regulations provide otherwise as to the authorities exercising the power of administrative sanction, the provisions of such laws and administrative regulations shall apply.
Article 71 Products confiscated in accordance with the provisions of this Law shall be disposed of or handled by other means in accordance with the relevant regulations of the State.
Article 72 The value of the products mentioned in the provisions from Article 49 to Article 54, Articles 62 and 63 shall be calculated on the basis of the marked prices of the products illegally manufactured or for sale; where such prices are not available, it shall be calculated on the basis of the market prices for similar products. Chapter 6