China's Consumer Rights Protection Law, which has been in place for 15 years, will soon undergo a major amendment.
According to Liu Junhai, the vice director of China Consumers' Association, the scope of application of consumer rights will be further expanded to include both tangible and intangible goods. In addition, a product recall system will be established and a cooling-down period, during which consumers can change their minds, must be arranged for three classes of product in addition to the government's audit of format consumption contracts.
Liu said that the amendment aims to expand the scope of consumers' rights. He stated that the new version of the law would include life-style consumption, development consumption, entertainment consumption, and luxury products consumption. He said that the cooling-down period must be provided for three classes of goods, including online transactions, prepaid items, and high ticket items involving a large expenditure such as cars and houses.
Liu believes that setting up a cooling-down period and a product recall system are both strategic measures to improve a company's competitiveness.
Liu also stated that the new version of the consumer protection law would extend the punishment for advertisement fraud.
