On March 19, 2024, China’s State Council issued regulations on the protection of consumer rights and interests. These are based on the Law on the Protection of Consumer Rights and Interests1, and include provisions on the roles of consumer organizations, conflict resolution and obligations of business management, including requirements related to greenwashing prevention. The regulations will come into effect July 1, 2024. Some obligations of business management are described below.
Product safety
When companies find defects in goods or services they provide that could harm the human body or properties, they must take appropriate measures promptly according to Article 19 of the Law on the Protection of Consumer Rights and Interests.
When recalling their products, manufacturers or importers of products must prepare a recall plan, publish recall information, publish a clear notice of consumer rights relevant to the recall, keep a complete record of the recall, and compensate for the expenses required for the recall incurred by consumers.
Companies involved in the sale, lease, repair, component manufacturing and supply, contract manufacturing, etc. of products are also required to support and cooperate in recalling processes according to the law.
Greenwashing
The state will develop green consumption standards, develop authentication and information disclosure systems, encourage companies to disclose information and make commitments on the green consumption of goods and services, and impose penalties for false green information disclosure and commitments according to the law.
The regulations (in Chinese) are available at
https://www.gov.cn/zhengce/content/202403/content_6940158.htm.
1 消费者权益保护法