Consumer Protection Gets Ahead

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  Li Haiping, a website editor, felt relieved when China Central Television (CCTv) finally exposed Nikon’s flawed D600 cameras on its annual March 15 Consumer Rights Day Gala, a television show.
  “Those who ignore consumers’ sentiments are bound to stew in their own juices. The revelation will definitely deal a heavy blow to the Japanese electronics manufacturer,” said Li.
  In October 2012, one of Li’s friends bought a Nikon D600, but soon found an accumulation of dust on its image sensor. Since Nikon’s aftersales service personnel refused to repair it, Li related his friend’s story on the website. To his surprise, a great many netizens shared similar experiences. In a concerted effort, they filed an allegation to the China Consumer Association(CCA) and sought support from influential media outlets such as CCTv.
  “The exposure proved that what we did aroused CCTv’s attention,” said Li.
  The consequences of being called out on the March 15 gala can be severe or even destructive for those who infringe on consumer rights, but the positive effects for consumers are also remarkable. On March 15, 2013, when the show first made public that Apple practiced a discriminative aftersales service policy toward Chinese consumers, the formerly uncooperative mobile phone vendor quickly made a conciliatory gesture by adjusting its maintenance policies.
  The same was true of Nikon. Following the revelation, Nikon China claimed on March 16 that it had been ordered to take the flawed products off shelves by the Shanghai Municipal Administration for Industry and Commerce, and it would repair or replace any defective cameras free of charge.
  To further intensify protection of consumer rights and reduce the cost of rights protection, the revised Law on the Protection of Consumer Rights and Interests took effect on March 15.
  yi Xianrong, a research fellow with the Chinese Academy of Social Sciences, said that consumers’ right-protection awareness, as well as the related laws and regulations, are continuously improving. Additionally illegal behavior like imparity clauses, false advertising and discriminative policies are more difficult to get away with in the Chinese market. Despite that, however, there is a long way to go in catching up with the United States and the European Union.
   top complaint categories
  According to a report released by the CCA, a total of 702,484 complaints were received in 2013, and 90.5 percent of them were settled, helping consumers to recover compensation totaling 1.17 billion yuan ($189 million).   The report suggests online shopping topped the list of complaints. Complaints on marketing and services amounted to 49,914 cases, and 12,950 cases involved online shopping.
  Online marketing offers consumers more options, but produces a cluster of problems at the same time. Firstly, consumers are more exposed to shoddy goods. Secondly, some online vendors are incapable of providing high-quality services, and delays in deliveries are a frequent occurrence. Thirdly, aftersales services often cannot be easily secured. For example, some online merchants try to pass the buck, or even worse, turn a deaf ear to refunding requirements.
  Another phenomenon noted was the rise of complaints regarding automobiles and parts. Income increase has made owning a private car a far less formidable prospect for Chinese consumers, resulting in a higher volume of complaints. In 2013, the CCA accepted a total of 25,268 such complaints, an increase of 66.5 percent from the previous year.


  On October 1, 2013, the Provisions on the Liability for the Repair, Replacement and Return of Household Automotive Products officially came into force, and contract, aftersales service and particularly quality turned out to be the three major auto-related complaints.
  The fulfillment of aftersales commitments for home appliances was also a major concern on consumers’ minds. In 2013, a total of 165,571 complaints were filed in the home appliance sector, accounting for 23.6 percent of the total, with most centering on repair, replacement and return. For instance, when consumers buy air-conditioners, refrigerators, or washing machines, manufacturers, as a rule, promise a three-year warranty period. However, when quality problems arise, they may refuse to repair the products for free, or find excuses to delay the maintenance.
  yi called for further examination of the aftersales services of the home appliance sector, for he reasoned that such a mature industry should have overcome such problems by now.
  Lastly, grievances in the express delivery industry are piling up rapidly. As remote shopping thrives, the express delivery industry is expanding its territory, and as a result, related complaints have also shot up. In 2013, complaints concerning the postal service industry numbered 13,352 cases, 61.2 percent of which were express service-related, examples of such being delayed deliveries, unreasonable compensation, and agents requesting consumers to confirm receipt before goods could be examined, especially for expensive, fragile commodities, a practice which causes great inconvenience.   As yi noted, these allegations reflect what has happened to the Chinese market. Since online shopping has experienced explosive growth in recent years, some necessary laws and regulations have not yet been put in place, which has incubated an array of potential problems. This is not to mention the express industry, which has its roots of growth in Internet businesses.
  Similarly, the expansion of the automobile industry has also been accompanied by endless consumer complaints, because improved laws and regulations have made many once-acceptable practices of auto distributors illegal.
   the revised law
  Jiang Tianbo, Secretary General of the CCA, said that the revised Law on the Protection of Consumer Rights and Interests would further clear the barricades on the path to safeguarding consumers’ rights in the near future.
  The scope of consumer rights and interests has been expanded upon in detail. Issues such as protecting personal information, improving and expanding upon present stipulations on the repair, replacement and return of commodities and services, increasing penalties for fraudulent behavior, and defending consumers’ privacy, property and health rights all fall within this scope.
  The duties and responsibilities of business operators have been further elaborated upon and emphasized. The law first and foremost makes it plain that business operators are obliged to recall defective products, not just automobiles, and carry the burden of proof.
  Special problems arising from online shopping and personal information protection have been outlined and dealt with properly. Online vendors and financial service providers are required to offer consumers accurate and necessary information in transactions. Consumers are entitled to return goods within seven days of receipt without giving any explanations. Online transaction platform operators are now required to carry out their duties and to take on civil responsibilities such as ceasing behavior that infringes on consumer rights, eliminating the damage caused by the use of defective products , and compensating for consumers’losses.
  The law has explicitly stipulated the supervisory responsibilities that administrative departments should undertake, and increased the severity of penalties on behavior that infringes on consumers’ rights and interests, such as falsifying production dates, delaying or refusing to follow the orders issued by the relevant supervising departments.
  The law has also made clear the nature and functions of the CCA—serving the public welfare, and placing an emphasis on the social supervision of rights and interests protection.
  Now, the CCA is allowed to file collective lawsuits against companies by organizing all of the consumers who find their rights have been trampled on.
  Jiang noted that the law has not only laid out how to protect consumers’ rights and interests in emerging industries, but also that much had been learned from other countries in the recall of defective products and protection of consumers’ personal information.
  “The law has really made great progress in safeguarding consumers’ rights and interests,”said Jiang.
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