China Revises Law to Protect Fair Competition

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The changes target online retailers and will come into effect as of January 1, 2018. The new law forbids business operators from building fake image of themselves to attract new customers. For example, the revised law stipulates that business operators should not deceive consumers by faking sales or employing “click farms” to rack up positive product reviews. The penalties for violation include fines ranging from $30,000 to $150,000 as well as revocation of business licenses in extreme cases.

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