The new "Consumer Rights Protection Law" will officially come into effect on March 15, which is International Consumer Rights Day. This marks the first comprehensive revision of the law in 20 years, significantly updating and enhancing consumer protections. What are the key differences between the old and new versions? How do these changes affect everyday consumers? Let’s explore the latest updates from Jinghua Home.
**Background: A Major Legal Update**
The original "Consumer Rights Protection Law" was enacted on October 31, 1993, by the Standing Committee of the National People's Congress. It established a legal framework to protect consumer rights, outlining the responsibilities of businesses and the roles of government and society. Since then, local governments have also developed their own regulations based on this law. In 2009, a minor amendment was made, changing one word related to public security penalties. However, it wasn’t until 2013 that a major revision took place, with the law being updated and taking effect on March 15, 2014.
**Seven Key Highlights for Consumers**
Experts have identified seven major changes that directly impact consumers:
**1. Clear Recall Obligation**
Under the new law, operators must immediately report and recall defective products that may harm consumers’ health or property. They are also responsible for covering the costs of the recall. This is the first time such a requirement has been legally mandated at the national level.
**2. 7-Day No-Reason Return Policy**
Consumers can return goods purchased online, via TV, phone, or mail order within seven days without needing to explain the reason. This applies even if there is no prior agreement. The change aims to address issues like mismatched product descriptions and poor quality, especially in e-commerce.
**3. Burden of Proof Shifts to the Operator**
For durable goods or services like TVs, refrigerators, or car repairs, the operator must prove the product is free of defects within six months. This shifts the burden of proof from the consumer to the seller, making it easier for consumers to claim their rights.
**4. Elimination of Unfair "Overlord Clauses"**
Operators cannot use unfair contract terms that limit consumer rights, reduce their liability, or force transactions. These clauses, often found in store policies or contracts, are now strictly regulated to ensure transparency and fairness.
**5. Increased Penalties for Fraud**
If an operator engages in fraudulent behavior, they must pay three times the price of the goods or service, with a minimum of 500 yuan. Administrative fines have also increased, with penalties reaching up to ten times the illegal income, making it more costly for businesses to mislead consumers.
**6. Illegal Activities Recorded in Credit Files**
Businesses found violating the law will have their violations recorded in credit files and made public. This creates a long-term deterrent, ensuring that those who break the rules face lasting consequences.
**7. Advertisers Held Accountable**
Ad agencies and celebrities who promote false advertisements that harm consumers can be held jointly liable. This means that if a celebrity endorses a faulty product, they could be held responsible for any damages caused.
These updates reflect a stronger commitment to protecting consumer rights, especially in the digital age where online shopping and advertising play a significant role. With these changes, consumers can expect greater transparency, better protection, and more accountability from businesses. Whether you're shopping online or in-store, the new law offers more confidence and support for your purchasing decisions.
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