Tips on Enterprise legal risk during epidemic prevention and control -- Criminal legal risk

Author: 国瓴律师
Published on: 2022-05-04 11:48
Read: 10

The COVID-19 outbreak in Shanghai is urgent, large-scale and widespread, and as the prevention and control measures are upgraded and continued, the risk of internal or external conflicts and disputes among enterprises is also accumulating. In order to help enterprises identify and prevent legal risks related to the epidemic, Hillhouse Law Firm will successively push Corporate Legal Risks Tips during Epidemic Prevention and Control to enterprises for reference in business decision-making and promote the healthy and orderly development of enterprises. This article focuses on the criminal legal risks faced by enterprises during the epidemic prevention and control period.

 

一、Enterprises are not allowed to bid up the prices of masks or other items that are urgently needed for epidemic prevention and control and seek excessive profits.

Whoever, in accordance with Article 225 of the Criminal Law of the People's Republic of China, commits other illegal business operations that seriously disrupt market order, if the circumstances are serious, shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention and shall also, or shall only, be fined not less than one time but not more than five times the illegal gains; If the circumstances are especially serious, he shall be sentenced to fixed-term imprisonment of not less than five years and shall also be fined not less than one time but not more than five times the illegal gains or confiscation of property. Article 6 of the Interpretation of the Supreme People's Court and the Supreme People's Procuratorate on Several Issues concerning the Specific Application of Law in Handling Criminal Cases that Interfere with the Prevention and Control of Infectious Disease Outbreaks and other Disasters, violating State regulations on market operation and price control during the prevention and control of infectious disease outbreaks and other disasters, jacking up prices, seeking excessive profits and seriously disrupting market order, If the amount of illegal gains is relatively large or there are other serious circumstances, he shall be convicted of the crime of illegal business operations in accordance with the provisions of item (4) of Article 225 of the Criminal Law and given a heavier punishment according to law.

During the period of COVID-19 prevention and control, enterprises violate the State regulations on market operation and price management during the period of prevention and control of infectious disease outbreaks and other disasters, bid up the prices of masks or other goods that are urgently needed for epidemic prevention and control, seek huge profits, obtain large amounts of illegal income, or have other serious circumstances, and seriously disrupt market order, May be suspected of violating the provisions of Article 225 of the Criminal Law, constituting the crime of illegal business.

 

二、The enterprise shall ensure that the masks, protective suits and other medical devices produced or sold for the prevention and control of infectious diseases comply with the national standards and industrial standards for the protection of human health; No unit may illegally recover contaminated waste masks and protective clothing for re-sale for profit after processing.

According to Article 140 of the Criminal Law of the People's Republic of China, a producer or seller who adulterates or adulterates a product, passes it off as genuine, passes it off as defective or passes it off as qualified, and the sales amount is not less than 50,000 yuan shall be sentenced to fixed-term imprisonment or criminal detention and shall also, or shall only, be fined not less than 50 percent but not more than two times the sales amount or confiscation of property. Article 141 Whoever produces or sells counterfeit drugs shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention and shall also be fined; If he causes serious harm to human health or if there are other serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than three years but not more than 10 years and shall also be fined; If he causes death to another person or if there are other especially serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than 10 years, life imprisonment or death and shall also be fined or be sentenced to confiscation of property. Article 142 Whoever produces or sells substandard drugs, thereby causing serious harm to human health, shall be sentenced to fixed-term imprisonment of not less than three years but not more than 10 years and shall also be fined not less than 50 percent but not more than two times the amount of sales; If the consequences are especially serious, he shall be sentenced to fixed-term imprisonment of not less than 10 years or life imprisonment and shall also be fined not less than 50 percent but not more than two times the sales amount or confiscation of property.

Article 145 Whoever produces medical instruments or medical hygiene materials that do not meet the State standards or trade standards for safeguarding human health, or knowingly sells medical instruments or medical hygiene materials that do not meet the State standards or trade standards for safeguarding human health and are enough to seriously endanger human health, shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention. A fine of not less than 50% but not more than two times the sales amount; If serious harm is caused to human health, he shall be sentenced to fixed-term imprisonment of not less than three years but not more than 10 years and shall also be fined not less than 50 percent but not more than two times the amount of sales; If the consequences are especially serious, he shall be sentenced to fixed-term imprisonment of not less than 10 years or life imprisonment and shall also be fined not less than 50 percent but not more than two times the sales amount or confiscation of property.

During the period of COVID-19 prevention and control, companies, enterprises, institutions and medical institutions that sell medical and health products that do not meet the regulations, collect medical waste for reprocessing or selling, or produce or sell fake or substandard drugs for the prevention and control of infectious diseases may be suspected of producing or selling shoddy products, producing or selling fake drugs, producing or selling substandard drugs. Crime of producing or selling sanitary equipment that does not meet the standards.

 

三、Property service providers, drug sales units, medical institutions, transportation operators and highway checkpoints and other units shall not illegally disclose the relevant information and data concerning personal privacy collected in accordance with relevant regulations, such as name, place of origin, residence, contact information.

Whoever, in accordance with Article 253 of the Criminal Law of the People's Republic of China, sells or provides to another person personal information of a citizen, if the circumstances are serious, shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention and shall also, or shall only, be fined; If the circumstances are especially serious, he shall be sentenced to fixed-term imprisonment of not less than three years but not more than seven years and shall also be fined. Whoever, in violation of the relevant regulations of the State, sells or provides to others the personal information of a citizen obtained in the course of performing his duties or providing services shall be given a heavier punishment in accordance with the provisions of the preceding paragraph. Whoever steals or illegally obtains citizens' personal information by other means shall be punished in accordance with the provisions of the first paragraph. Where a unit commits any crime mentioned in the preceding three paragraphs, it shall be fined, and the persons who are directly in charge and the other persons who are directly responsible for the crime shall be punished in accordance with the provisions of these paragraphs.

During the epidemic prevention and control period, the personal information collected by residential property, pharmacies, medical institutions, transportation operators and highway checkpoints and other units in accordance with relevant regulations can only be used for epidemic prevention and control work, and shall not be used for other purposes, and the above units have the obligation to ensure that citizens' personal information is not leaked or stolen.

 

四、Medical and health institutions shall properly dispose of medical waste and shall not arbitrarily dump or dispose of waste containing pathogens of infectious diseases and other dangerous materials.

Whoever, in accordance with Article 338 of the Criminal Law of the People's Republic of China, violates State regulations by discharging, dumping or disposing of radioactive waste, waste containing pathogens of infectious diseases, toxic substances or other harmful substances, thus seriously polluting the environment, shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention and shall also, or shall only, be fined; If the consequences are especially serious, he shall be sentenced to fixed-term imprisonment of not less than three years but not more than seven years and shall also be fined.

Any company, enterprise, public institution or medical institution, in violation of the Law on the Prevention and Control of Infectious Diseases and other relevant provisions of the State, discharges, dumps or discharges waste, toxic substances or other hazardous waste containing pathogens of infectious diseases into land, water body or atmosphere, causing damage such as the spread of sudden infectious diseases and causing serious consequences such as heavy losses of public or private property or personal injury or death; May be suspected of environmental pollution.

 

五、Companies, enterprises and institutions may not, in violation of State regulations, use advertisements to falsely advertise the commodities or services they sell under the guise of preventing or controlling sudden epidemics of infectious diseases and other disasters.

According to Article 222 of the Criminal Law of the People's Republic of China, any advertiser, advertising agent or advertisement publisher who, in violation of State regulations, uses advertisements to falsely advertise commodities or services shall, if the circumstances are serious, be sentenced to fixed-term imprisonment of not more than two years or criminal detention and shall also, or shall only, be fined.

During the period of COVID-19 prevention and control, companies, enterprises and institutions falsely advertise that the goods and services they sell can prevent and control infectious diseases in the name of epidemic prevention and control, causing many people to be deceived, with a large amount of illegal income or other serious circumstances, may be suspected of the crime of false advertising.

 

六、Enterprises shall not defraud public or private property under the guise of producing or selling epidemic prevention and control products.

Whoever, in accordance with Article 266 of the Criminal Law of the People's Republic of China, defrauds public or private property, if the amount involved is relatively large, shall be sentenced to fixed-term imprisonment of not more than three years, criminal detention or public surveillance and shall also, or shall only, be fined; If the amount involved is huge, or if there are other serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than three years but not more than 10 years and shall also be fined; If the amount involved is especially huge or if there are other especially serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than 10 years or life imprisonment and shall also be fined or have property confiscated. Where this Law provides otherwise, such provisions shall prevail.

Whoever, during the period of preventing or controlling the outbreak of infectious diseases or other disasters, defrauds public or private property of a relatively large amount under the guise of developing, producing or selling the articles for the prevention or control of the outbreak of infectious diseases or other disasters, shall be convicted in accordance with the relevant provisions of the Criminal Law on the crime of fraud and given a heavier punishment according to law.

 

七、The employing unit shall not, in violation of relevant regulations, return to work in advance or force workers to engage in work where there is a risk of epidemic transmission. During the resumption of work, the employer shall properly perform the safety protection obligations stipulated by relevant laws and regulations.

Whoever, in accordance with Article 330 of the Criminal Law of the People's Republic of China, violates the provisions of the Law on the Prevention and Control of Infectious Diseases and commits any of the following acts, thereby causing the spread of A Class A infectious disease or causing a serious danger of such spread, shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention; (1) Drinking water supplied by a water supply unit does not meet the sanitary standards prescribed by the State; (2) refusing to disinfect sewage, waste matter or feces contaminated by the pathogen of infectious diseases in accordance with the hygiene requirements set forth by a health and anti-epidemic agency; (3) permitting or conniving at patients, pathogen carriers or suspected patients of infectious diseases to engage in work that is prohibited by the health administration department under The State Council and is liable to cause the spread of infectious diseases; (4) refusing to implement the preventive and control measures proposed by the health and anti-epidemic agency in accordance with the Law on the Prevention and Treatment of Infectious Diseases. Where a unit commits the crime mentioned in the preceding paragraph, it shall be fined, and the persons who are directly in charge and the other persons who are directly responsible for the crime shall be punished in accordance with the provisions of the preceding paragraph. The scope of class A infectious diseases shall be determined in accordance with the Law of the People's Republic of China on the Prevention and Control of Infectious Diseases and the relevant provisions of The State Council.

In addition to ensuring urban operation, epidemic prevention and control, people's livelihood and other relevant enterprises related to important national economy and people's livelihood, the employer shall strictly comply with the resumption of work time and relevant requirements stipulated by the relevant local administrative departments. Those who violate relevant regulations and aggravate the spread of infectious diseases or have a "serious risk of transmission" shall bear corresponding criminal responsibility. Any unit or individual that intentionally spreads the pathogen of an emergent infectious disease to endanger public security shall constitute a crime of endangering public security by dangerous means.

The outbreak of the epidemic has brought major uncertainties to the operation and development of enterprises. Hillhouse Law Firm will give full play to its professional advantages and effectively help enterprises prevent legal risks arising from the epidemic. In light of the current epidemic prevention and control needs and the actual situation of enterprises, we will provide more forms of legal services to enterprises to help them tide over the difficulties of the epidemic.

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