China Revises its Consumer Protection Law
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China recently made sweeping changes to its Consumer Protection law. The changes mark the first time that the law was modified in two decades – brought on by what the Chinese government calls “changes in the makeup and challenges of the consumer sector.”
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
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