The Standing Committee of the Shanghai Municipal People's Congress issued the "Shanghai Anti-Unfair Competition Regulations"
The Regulations of Shanghai Municipality against Unfair Competition, amended and adopted at the 26th Meeting of the Standing Committee of the 15th Shanghai Municipal People's Congress on October 27, 2020, are hereby promulgated and shall come into force as of January 1, 2021.
Shanghai Anti-Unfair Competition Regulations
(Revised at the 26th Meeting of the Standing Committee of the 15th Shanghai Municipal People's Congress on October 27, 2020)
Chapter I General provisions
Article 1 For the purpose of promoting the healthy development of the socialist market economy, encouraging and protecting fair competition, stopping acts of unfair competition, protecting the legitimate rights and interests of business operators and consumers, and optimizing the business environment, these Regulations are formulated in accordance with the provisions of the Law of the People's Republic of China against Unfair Competition and relevant laws and administrative regulations, and in light of the actual conditions of this Municipality.
Article 2 Natural persons, legal persons and unincorporated organizations (hereinafter referred to as business operators) engaged in the production and operation of commodities or the provision of services (hereinafter referred to as commodities including services) in this Municipality shall, in their production and operation activities, abide by the principles of voluntariness, equality, fairness and good faith, abide by laws and regulations and business ethics, and shall not carry out or help others to carry out acts of unfair competition.
Article 3 The Municipal people's Government shall establish a coordination mechanism for anti-unfair competition work, study and decide on the major policies of this Municipality against unfair competition, coordinate and deal with the major issues of maintaining market competition order in this Municipality, and create a good environment and conditions for fair competition.
The people's governments of all districts shall establish a coordination mechanism for anti-unfair competition work in their respective districts, and coordinate and handle cross-departmental anti-unfair competition law enforcement work in their respective districts.
Article 4 The municipal market supervision and administration department shall be responsible for guiding and coordinating the prevention and investigation of acts of unfair competition in this Municipality, and investigating and dealing with acts of unfair competition in this Municipality that are major and cross-district. The district market supervision and administration department shall be responsible for the prevention and investigation of acts of unfair competition within its administrative area.
The departments of finance, cultural tourism, civil affairs, sports and commerce (hereinafter referred to as the supervision and inspection departments together with the market supervision and administration departments) shall, in accordance with the provisions of laws and administrative regulations, be responsible for the prevention, investigation and punishment of acts of unfair competition within the scope of their respective duties.
The departments of public security, development and reform, local financial supervision and Internet and information technology shall, in accordance with their respective responsibilities, do a good job in combating unfair competition.
Supervision and inspection departments such as market supervision and management shall establish information sharing and collaborative working mechanisms with relevant departments for anti-unfair competition cases, strengthen the notification and transfer of case clues, carry out investigation and evidence collection assistance, and explore joint law enforcement in key areas and key regions.
Article 5 This Municipality shall explore the establishment of a monitoring, analysis and research mechanism for acts of unfair competition.
The market supervision and administration department shall, together with relevant departments, professional colleges and universities, scientific research institutions and industry organizations, explore and carry out monitoring, analysis and research on unfair competition behaviors in key fields, key regions and new forms of business, so as to provide references for this Municipality to formulate anti-unfair competition policies.
Article 6 Market supervision and administration and other supervision and inspection departments shall strengthen the construction of online and offline supervision systems and the construction of supervision and law enforcement teams, and use modern information technologies such as artificial intelligence and big data to improve the ability to detect and investigate unfair competition.
Article 7 This Municipality promotes the implementation of regional cooperation on anti-unfair competition in the Yangtze River Delta (hereinafter referred to as the Yangtze River Delta), carries out cross-regional assistance and joint law enforcement, realizes the sharing of law enforcement information and the unification of law enforcement standards, and promotes the coordination of major anti-unfair competition policies and the optimization of the market environment in the Yangtze River Delta region. We will explore the integration of anti-unfair competition law enforcement in the eco-green integrated development demonstration zone of the Yangtze River Delta.
This Municipality shall strengthen exchanges and cooperation with other provinces and cities in anti-unfair competition work, and cooperate and assist relevant administrative and judicial organs of other provinces and cities in investigation and collection of evidence, service of documents, execution and other work according to law.
Chapter II Acts of unfair competition
Article 8 A business operator shall not engage in any of the following acts of confusion to cause people to be mistaken for another person's commodities or to have a specific connection with another person:
(1) Unauthorized use of the name of a commodity, packaging, decoration, etc., which is the same or similar to others;
(2) Unauthorized use of enterprise names (including abbreviations, shop names, etc.), social organization names (including abbreviations, etc.), names (including pen names, stage names, translated names, etc.) that have certain influence on others;
(3) Unauthorized use of the main part of the domain name, the name of the website, the webpage, etc., which has certain influence on others;
(4) Unauthorized use of the unique shape of a commodity, the name of a program, the name of an enterprise logo, the name of an online shop, the name or logo of a we-media, the name or icon of an application software, which is identical or similar to that of others;
(5) other acts of confusion that are sufficient to cause people to be mistaken for the goods of others or have specific connections with others.
The labels that have a certain impact as mentioned in the preceding paragraph refer to the distinctive signs that are known to the public within a certain range and can identify the commodity or its source. The "use act" mentioned in the preceding paragraph includes the act of producing or selling the marks which have certain influence on others. Where a business operator first uses a sign that has certain influence on others, it may continue to use it within the original scope of use.
Operators shall not help other operators to carry out confusing acts by associating other people's influential logos with keyword searches, etc.
Article 9 A business operator shall not bribe the following units or individuals by means of property or other means in order to obtain trading opportunities or competitive advantages:
(1) the staff of the other party to the transaction;
(2) Units or individuals entrusted by the other party to handle related affairs;
(3) Entities or individuals that use their power or influence to influence transactions.
No unit or individual may accept, promise to accept or accept bribes through others to seek trading opportunities or competitive advantages for business operators.
Any discount or commission paid or accepted by a business operator, a counterparty to a transaction, or an intermediary shall be truthfully recorded in the accounts in accordance with the relevant financial system.
Article 10 A business operator shall not make false or misleading commercial publicity about the performance, function, quality, sales status, user evaluation, or previous honors of its commodities, so as to deceive or mislead consumers or other relevant members of the public.
The acts of commercial publicity mentioned in the preceding paragraph include:
(1) Display, demonstration, explanation, explanation, promotion or text marking of commodities at business premises or other places such as exhibitions, trade fairs and expositions, as well as through information networks such as the Internet;
(2) Display, demonstration, explanation, explanation, promotion or text marking of commodities through door-to-door sales or holding appraisal meetings, publicity meetings, promotion meetings, etc.;
(3) Posting, distributing or mailing descriptions, pictures or other materials of commodities;
(4) Other commercial publicity activities that do not constitute advertising.
If one of the following circumstances is sufficient to cause misunderstanding among the relevant public, it can be identified as misleading commercial publicity:
(1) one-sided propaganda or comparison of commodities;
(2) Ignoring preconditions, the use of necessary information, or not fully quoting third-party data, conclusions, etc.;
(3) taking scientifically inconclusive views or phenomena as conclusive facts;
(4) using ambiguous language for propaganda;
(5) Other misleading commercial propaganda.
Article 11 Business operators shall not carry out the following acts to help other business operators to carry out false or misleading commercial publicity on sales volume, user evaluation, application ranking, search result ranking, etc. :
(1) Organizing false transactions, fictitious evaluations, forging logistics documents, and inducing designated evaluations;
(2) providing services such as organization, planning, production and publication, as well as funds, places, tools and other conditions for other business operators to carry out false or misleading commercial publicity;
(3) Other acts that help to carry out false or misleading commercial publicity.
Whether the false or misleading commercial publicity implemented by the other business operators assisted is completed shall not affect the determination of the illegal acts listed in the preceding paragraph.
Article 12 A business operator shall not commit any of the following acts infringing on trade secrets:
(1) Obtaining the business secrets of the right holder by theft, bribery, fraud, coercion, electronic intrusion or other improper means;
(2) Disclosing, using or allowing others to use the business secrets of the right holder obtained by means mentioned in the preceding paragraph;
(3) disclosing, using or allowing others to use the business secrets of the obligee in violation of the confidentiality obligation or the confidentiality requirements of the obligee;
(4) inciting, enticing or helping others to violate the confidentiality obligation or the confidentiality requirements of the right holder to obtain, disclose, use or allow others to use the right holder's trade secrets.
Where any natural person, legal person or unincorporated organization other than the business operator commits an illegal act listed in the preceding paragraph, it shall be regarded as an infringement of trade secrets.
Where a third party, knowing or should have known that an employee, former employee or other unit or individual of the right holder of a trade secret has committed an illegal act listed in the first paragraph of this article, still obtains, discloses, uses or allows another person to use the trade secret, it shall be deemed as infringing on the trade secret.
The term "trade secret" as mentioned in these Regulations refers to technical information, business information and other commercial information that is not known to the public, has commercial value and has been subject to appropriate confidentiality measures taken by the right holder, including:
(1) Technology-related experimental (test) data, formulations, processes, design schemes, technical know-how, program codes, algorithms, research and development records and other information;
(2) Customer information, source information, production and marketing strategy, profit model, salary system, bidding document content and other information related to business activities;
(3) Other commercial information.
Where a business operator obtains the technical information of a product through its own development or through technical means such as disassembling, surveying and mapping, analyzing a product obtained from an open channel, it does not constitute an act of infringing another's trade secret.
Article 13 The right holder of a trade secret shall, in accordance with the actual situation of the trade secret, take appropriate confidentiality measures, including:
(1) Limiting the scope of access to classified information;
(2) take measures such as locking and marking security labels for the carriers of classified information;
(3) Setting passwords or codes for confidential information;
(4) Sign confidentiality agreements with relevant personnel or make confidentiality requirements for relevant personnel;
(5) Take confidentiality management measures such as restricting visitors or making confidentiality requirements for the machinery, plant, workshop and other equipment or places where the confidential information is located;
(6) Other relevant security measures.
Article 14 Where a business operator, in order to sell commodities or gain a competitive advantage, adopts a sales act with prizes to provide consumers with bonuses, goods or other benefits, the following circumstances shall not exist:
(1) The categories of prizes, the conditions for redemption, the amount of bonuses or prizes and other prize sales information are not clear, affecting the redemption of prizes;
(2) sales with prizes by deceptive means of falsely claiming to have prizes or intentionally letting the designated personnel win prizes;
(3) Lottery sales, with the highest prize amount exceeding 50,000 yuan.
The information of the prize sale referred to in the first paragraph of the preceding paragraph is not clear, including:
(1) The types of prizes announced, the conditions for participation, the scope and methods, the time and methods of drawing prizes, and the amount of prizes are not clear;
(2) The price, name, type and quantity of the prize are not clear;
(3) The time, conditions and methods of claiming the prize, the delivery method of the prize, the conditions for abandoning the prize, the organizer and its contact information are not clear;
(4) Other prize sales information is not clear.
The sale of prizes in the manner referred to in paragraph 1 (2) of this Article, which is falsely claimed to be a prize, includes:
(1) Fictitious awards, prizes, bonus amounts, etc.;
(2) During the lottery sales activities, the commodities and lottery tickets with the winning logo are not released, are not fully released on the market, or are only released in specific areas;
(3) Placing goods and lottery tickets with different bonus amounts or prize signs on the market at different times without being explicitly stated before the sale of prizes;
(4) failure to redeem prizes in accordance with the express information;
(5) Other ways of falsely claiming prizes.
The maximum prize amount stipulated in Paragraph 1 (3) of this article is more than 50,000 yuan, including the one-time lottery amount of more than 50,000 yuan, and the same lottery ticket or the purchase of a commodity with two or more times of winning the cumulative amount of more than 50,000 yuan.
After the commencement of prize sales activities, operators shall not arbitrarily change the categories of awards, participation conditions, lottery methods, lottery methods and other information, and shall not attach additional conditions or restrictions, except those that are beneficial to consumers.
Article 15 A business operator shall not fabricate, disseminate or instigate others to fabricate or disseminate false or misleading information to damage a competitor's commercial reputation or commodity reputation.
The communication referred to in the preceding paragraph includes:
(1) Transfer information to specific or unspecified objects in the form of statements or letters to customers;
(2) Using or organizing or instigating others to disseminate relevant information through mass media or information networks;
(3) Organize or instigate others to evaluate the competitor's commodities in the name of consumers and disseminate relevant information;
(4) other acts of communication.
A business operator shall not make false or misleading risk information about a competitor's commodities, which may damage the commercial reputation or commodity reputation of a competitor.
Article 16 Business operators engaged in production and business activities through the use of networks shall abide by laws and regulations and commercial ethics, and shall not use technical means to influence users' choices or other means to carry out the following acts that hinder or destroy the normal operation of network products or services legally provided by other business operators:
(1) Inserting links or forcing target jumps in the network products or services lawfully provided by other business operators without their consent;
(2) misleading, deceiving, or forcing users to modify, close, uninstall, or fail to obtain network products or services legally provided by other operators;
(3) maliciously incompatibility of network products or services lawfully provided by other business operators;
(4) To intercept or shut down network products or services lawfully provided by other business operators without justifiable reasons;
(5) Downloading, installing or running application programs against the wishes of users, affecting the normal operation of equipment, functions or other programs legally provided by other business operators;
(6) Failing to provide uninstallation functions for applications with non-basic functions or setting obstacles to the uninstallation of application programs, affecting the normal operation of equipment, functions or other programs legally provided by other operators;
(7) Other acts that hinder or disrupt the normal operation of network products or services lawfully provided by other business operators.
The third chapter investigates the suspected acts of unfair competition
Article 17 The supervision and inspection department shall verify the clues of illegal acts of unfair competition found in accordance with its functions and powers or through complaints, reports, transfers by other departments, and instructions from superiors within the prescribed time limit and decide whether to file a case.
Article 18 Where a supervision and inspection department finds that the case dealt with falls under the jurisdiction of another department, it shall transfer the case to the relevant department according to law. Where cross-departmental jurisdictional disputes occur and cannot be resolved through consultation, they shall be submitted to the municipal or relevant district anti-unfair competition coordination mechanism for decision.
Article 19 Supervision and inspection departments investigating suspected acts of unfair competition may take the following measures:
(1) entering the business premises suspected of acts of unfair competition for inspection;
(2) interrogating the business operators under investigation, interested persons and other relevant units and individuals, asking them to explain the relevant situation or provide other information related to the conduct under investigation