According to an article by Reuters, the new laws “increase consumer powers, add rules for the booming internet shopping sector and stiffen punishments for businesses that mislead shoppers.”
The true purpose of the revisions, according to the article, is so that China can further move its economy away from one that is built on investment-driven growth, and transform it into one that’s led by domestic consumption.
Consumption contributed to just 45% of China’s economy during the beginning of 2013, which is down from about 60% during the same period last year. The Chinese government hopes that these new law is going to allow consumers to purchase Chinese products with increased confidence.
The new revisions will also strengthen the role of the China Consumers' Association, which sometimes acts as a representative for plaintiffs in class action suits brought against retailers.
To read more, you can read the article from Reuters here: China Overhauls Consumer Protection Laws
Check out some related articles by IPG Legal here:
- Import Duties & Taxes in China: The Wine Example
- How to Succeed in Business in China
- Another Reason for Establishing a Company in Hong Kong for Entering the Chinese Market
- China May be Deep into a Bubble According to the Financial Times
Sean Hayes may be contacted at: SeanHayes@ipglegal.com.
Sean Hayes is co-chair of the Korea Practice Team and Entertainment, Media and New Tech Law Team at IPG Legal. He is the first non-Korean attorney to have worked for the Korean court system (Constitutional Court of Korea) and one of the first non-Koreans to be a regular member of a Korean law faculty.
He assists clients in their contentious, non-contentious and business developments needs in Korea and China.