Order of the State Administration for Market Regulation

No. 44

“The Administrative Measures for the List of Serious Violation of Law and Breach of Trust in Market Supervision and Administration”, which were deliberated and adopted at the 11th Executive Meeting of the State Administration for Market Regulation on July 22, 2021, are hereby promulgated and shall enter into force on September 1, 2021.

                      Director: Zhang Gong

July 30, 2021

The Administrative Measures for the List of Serious Violation of Law and Breach of Trust in Market Supervision and Administration

Article 1 These Measures are formulated in accordance with relevant laws and administrative regulations for the purpose of standardizing the management of the list of market supervision and administration departments for serious violation of law and breach of trust, strengthening credit supervision, expanding social supervision and promoting self-discipline in good faith.

Article 2 Where the party concerned violates the law or administrative regulations, the nature of the violation is bad, the circumstance is serious, the social harm is great, in case of heavier administrative penalties imposed by the Market Supervision and Administration Department, the Market Supervision and Administration Department shall, in accordance with the provisions of these Measures, include them in the list of serious violation of law and breach of trust, publicize them through the state enterprise credit information publicity system, and implement corresponding administrative measures.

Heavier administrative penalties mentioned in the preceding paragraph shall include:

(1) According to the benchmark of administrative penalty discretion, a fine shall be imposed in accordance with the principle of heavier punishment;

(2) The qualification level shall be lowered, and the permit license and business license shall be revoked;

(3) To restrict the development of production and business activities, order the suspension of production and business, order the closure of business, and restrict the occupation;

(4) Other heavier administrative penalties prescribed by laws, administrative regulations and departmental rules.

Article 3  The State Administration for Market Regulation shall be responsible for organizing and guiding the administration of the national list of serious violation of law and breach of trust.

The local Market Supervision and Administration Department at or above the county level shall be responsible for the administration of the list of serious violation of law and breach of trust in accordance with the provisions of these Measures.

Article 4 Market Supervision and Regulation Departments shall, in accordance with relevant provisions, share the list information of serious violation of law and breach of trust with other relevant departments, and implement joint punishments in accordance with laws, administrative regulations and policy documents of the CPC Central Committee and The State Council.

Article 5 Those who commit any of the following illegal acts in the field of food safety and fall under the circumstances stipulated in Article 2 of these Measures shall be included in the list of serious violation of law and breach of trust (blacklist of production operators who seriously violate food safety laws):

(1) Engaging in food production and marketing activities without obtaining food production and marketing licenses according to law;

(2) The production of food from non-food raw materials; Adding chemical substances other than food additives to food and other substances that may harm human health; Production and marketing of main and supplementary foods for infants and other specific groups whose nutritional components do not meet food safety standards; Production and marketing of food containing medicines; Production and marketing of poultry, livestock, animal, aquatic animal meat and its products that have died of disease, poisoning or of unknown cause; Production and marketing of meat that fails to undergo quarantine inspection or fails to pass quarantine inspection; To produce and market foods the production and marketing of which is expressly prohibited by the country for the prevention of diseases and other special needs;

(3) Production and marketing of pathogenic microorganisms, pesticide residues, veterinary drug residues, biological toxins, heavy metals and other pollutants and other substances harmful to human health in excess of food safety standards for food, food additives; Production and marketing of food and food additives produced with food raw materials and food additives that have exceeded their shelf life; Production and marketing of health food, formula food for special medical use, infant formula milk powder which is not registered in accordance with the regulations, or the production of the product formula and production technology which is not registered in accordance with the technical requirements; The labels or instructions on the food produced or marketed contain false contents, involving the function of disease prevention or treatment, or the labels or instructions on the food produced or marketed other than the health food claim to have health functions;

(4) Other illegal acts that violate the provisions of food safety laws and administrative regulations and seriously endanger the health and life safety of the people.

Article 6 Those who commit any of the following illegal acts in the field of drugs, medical devices and cosmetics and fall under the circumstances prescribed in Article 2 of these Measures shall be included in the list of serious violation of law and breach of trust activities:

(1) Production and sale of fake and inferior drugs; Illegally producing or selling drugs (including vaccines) that the state has special control requirements; Production, import or sale of drugs without drug approval documents (including vaccines);

(2) Production and sale of unregistered class II and Class III medical devices;

(3) Production, sales of illegal additives may harm human health substances cosmetics;

(4) Other illegal acts that violate the provisions of laws and administrative regulations on pharmaceuticals, medical devices and cosmetics and seriously endanger the health and life safety of the people.

Article 7 Those who commit any of the following illegal acts in the field of quality and safety and fall under the circumstances prescribed in Article 2 of these Measures shall be included in the list of serious violation of law and breach of trust activities:

(1) To produce, sell, lease and use the special equipment that has not obtained the production license, has been officially eliminated by the state, has been scrapped, has not been inspected or fails to pass the inspection; Fill the mobile pressure vessels and gas cylinders that do not meet the requirements of safety technical specifications;

(2) To produce or sell products that do not meet the national standards for safeguarding health and safety of life, to adulterate in products, to pass off fake products as genuine ones, to pass off inferior ones as good ones, or to pass off substandard products as qualified ones, or to produce or sell products that have been eliminated by state order;

(3) The product quality is not qualified in the random inspection. It is announced by the Market Supervision and Administration Department of the People's Government at or above the provincial level, and is still not qualified after re-examination after the announcement;

(4) To issue false or seriously inaccurate conclusions of inspection, testing, certification and accreditation, which seriously endangers quality and safety;

(5) Forging, falsely using, buying or selling certification marks or certificates; Without authorization to produce, sell, import or use in other business activities the products listed in the mandatory product certification catalogue;

(6) Other illegal acts that violate the provisions of laws and administrative regulations in the field of quality and safety and seriously endanger the health and life safety of the people.

Article 8 Those who commit any of the following illegal acts in the field of infringement of consumer rights and interests and fall under the circumstances prescribed in Article 2 of these Measures shall be included in the list of serious violation of law and breach of trust activities:

(1) Infringe on consumers' rights to personal dignity and personal information protection in accordance with the law;

(2) To evade or refuse to perform obligations after receiving fees in advance, close down business or move service places, fail to provide commodities or services as agreed, and be confirmed by the market supervision and administration department as being unreachable;

(3) Manufacture, sell or use measuring instruments for the purpose of deceiving consumers; Copying, colluding or altering measurement comparison data, forging data, issuing false measurement calibration certificates or reports, infringing on the rights and interests of consumers;

(4) Refusing or delaying the recall of defective products after being ordered to do so;

(5) Other illegal acts that violate the provisions of laws and administrative regulations and seriously infringe upon the rights and interests of consumers.

Article 9 Those who commit any of the following illegal acts in the field of disrupting the order of fair competition and market order and fall under the circumstances prescribed in Article 2 of these Measures shall be included in the list of serious violation of law and breach of trust activities:

(1) Unfair competition acts that seriously undermine the order of fair competition, such as infringement of commercial secrets, commercial slander, and organizing false transactions;

(2) Intentional infringement of intellectual property rights; Filing abnormal patent applications or malicious trademark registration applications harms public interests; Engaging in seriously illegal acts of patent or trademark agency;

(3) Price collusion, dumping and price gouging; Not to implement government-set or guided prices for goods or services that have a bearing on the national economy and the people's livelihood, nor to implement price intervention measures or emergency measures adopted in response to emergencies;

(4) To organize and plan pyramid schemes or to provide convenience for pyramid schemes;

(5) To issue false advertisements for commodities or services that concern the lives and health of consumers;

(6) Other illegal acts that violate the provisions of laws and administrative rules and regulations, seriously undermine the order of fair competition and disrupt market order.

Article 10 Those who commit any of the following illegal acts and fall under the circumstances prescribed in Article 2 of these Measures shall be included in the list of serious violation of law and breach of trust:

(1) Engaging in business activities without obtaining other licenses according to law;

(2) Submit false materials or take other means to conceal important facts, obtain administrative license, obtain, alter or cancel the registration of market entities, or alter, resell, lease or sell the license or business license;

(3) To refuse, obstruct or interfere with the market supervision and administration department to carry out supervision and inspection and accident investigation according to law.

Article 11 A party has the ability to perform administrative decisions such as administrative penalties or administrative rulings made by the Market Supervision and Regulation Department, but refuses to do so or evaded execution, which seriously affects the public trust of the Market Supervision and Regulation Department, the party shall be included in the list of serious violation of law and breach of trust.

Where laws, administrative regulations and policy documents of the CPC Central Committee and The State Council provide for the inclusion of relevant responsible market players in the list of serious violation of law and breach of trust, such provisions shall apply.