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Article 1. For the purposes of effectively implementing the price-related administrative punishments, timely controlling abnormal fluctuations of market prices, protecting the public interests and maintaining social stability, the present measures are formulated in pursuance of the Price Law, Administrative Punishment Law and the Provisions on the Administrative Punishments on Price-related Violations. Article 2. Under any of the following circumstances, a business operator who jacks up prices by violating Article 14 of the Price Law shall be given an administrative punishment by the government price administrative department in accordance with Article 5 of the Provisions on the Administrative Punishments on Price-related Violations: (1) Fabricating and spreading price-rise information and raising the prices excessively; (2) There is no obvious change to the production cost or purchasing cost, but it raises the prices by a big margin for seeking sudden huge profits; (3) Taking the lead in increasing the prices by a big margin in some regions or industries; or (4) Hoarding and speculating that results in short supply of goods and a drastic increase in prices. The concrete price-rise margin or price-increase margin for constituting an act of jacking up prices shall be put forward by the provincial price administrative department in light of the specific circumstances and shall be reported to the provincial people¡¯s government for approval. Article 3. A business operator who hikes up prices in any of the following ways by violating Article 14 of the Price Law shall be given an administrative punishment by the price administrative department in accordance with Article 6 of the Provisions on the Administrative Punishments on Price-related Violations: (1) Selling goods by jacking up the grades of the goods or charging fees; (2) Selling counterfeited or defective goods as quality goods to degrade the quality; (3) Making shoddy products, giving short measure and less weight to decrease the quantities; or (4) Other acts of hiking prices in disguised forms. Article 4. Where a local government or any of its organs violates the Price Law by formulating or adjusting prices or failing to implement the statutory price intervention or emergency measures by going beyond the pricing power and scope, its superior government or government price administrative department shall order it to get right as well as criticize it by circulating a notice. As to the direct liable person-in-charge and other directly liable persons, the superior government price administrative department may submit a proposal to the competent organ to give them an administrative sanction. Article 5. A guild shall accept the guidance of the government price administrative department. If it commits any illegal act relating to price and the circumstance is very serious, the price administrative department may submit a proposal to the registration administrative organ to deregister it. Article 6. When the State Council takes price intervention or emergency measures in accordance with the law, when the people's governments of all provinces, autonomous regions, or municipalities directly under the Central Government take price intervention measures pursuant to the law, Articles 7 through 10 of the present Measures shall apply to the supervision and inspection of the government price administrative departments. Article 7. With regard to the price violation relating to any of the goods and services listed into the scope of price intervention or emergency measures, or to any other correlative goods or service that may possibly be involved in, heavier punishments shall be imposed in pursuance of Article 15 of Provisions on the Administrative Punishments on Price-related Violations. Within the statutory scope for monetary penalties, the highest one shall be applied. If there are two or more administrative punishments available, the heaviest one shall be adopted. Or if the violation may be concurrently punished, it may be punished concurrently. Article 8. The price administrative law enforcers may follow the procedures as below so as to deter price-related violations as soon as possible: (1) When or before law enforcers conduct investigation or inspection, they aren't required to serve an Inspection Notice on the party concerned, but they shall show their law enforcement certificates; (2) During the process of investigation or inspection, if they discover any act that shall be given an administrative punishment, they may, on the spot, decide to place the case on file for investigation. They shall make transcripts of placing the case on file for investigation, interrogating or inspecting; (3) Before making an administrative punishment, they aren't required to serve on the party concerned an Aforehand Notification of Administrative Punishment or Notification of Hearing of Administrative Punishment. They may orally inform it of the aforementioned notification procedure for administrative punishment or notification procedure for hearing; (4) When the investigation is terminated, the persons-in-charge of the price administrative department shall immediately examine the investigation results and shall timely make a decision of administrative punishment. If the circumstance is complex or the illegal act is very serious, a relatively heavier administrative punishment may be decided by the persons-in-charge of the price administrative department through collective discussion rather than by holding a meeting of the case trial board; (5) If they may make a decision of administrative punishment on the spot and if it is difficult to execute the monetary penalty afterwards, they may collect the money on the spot. Article 9. A business operator who is under any of the following circumstances may be punished by considering him/it having no illegal gains: (1) Without legal sales or fee charging vouchers; (2) Hiding or destroying the sales or fee charging vouchers; (3) It is without basis for the calculation of the amount of illegal gains due to its concealing the quantities of sales or fee charging vouchers or due to the fact that the amount on the account and the amount on the vouchers does not agree with each other; (4) The total excessive purchase price has been refunded; or (5) Other circumstances that the business operator shall be punished by considering him/it having no illegal gains. Article 10. Where a price-related illegal act causes the consumers or other business operators to have paid an excessive purchase price, the party concerned shall be ordered to refund the excessive part within a time limit. If he/it refuses to do so or if it is difficult for him/it to do so within the time limit, he/it shall be punished by considering him/it having illegal gains. Article 11. Where the price administrative law enforcers fail to timely deter or to give a heavier punishment on a price-related violation that shall be timely deterred or be given a heavier punishment, or where an improper punishment given by the price administrative law enforcers results in any damage to the legitimate rights and interests of a citizen, legal person or any other organization, or public interests or social order, the direct liable person-in-charge and other direct liable persons shall be subject to investigation and punishment. Article 12. The power to interpret the present Measures shall remain with the National Development and Reform Commission. Article 13. The present Measures shall be implemented as of September 1, 2004. |
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