On 15 October 2025, the second revision to the Anti-Unfair Competition Law enters into force. The revised law includes consumer-protection safeguards and introduces regulatory provisions addressing unfair competition in digital business operations. Under Article 9, operators are prohibited from making false or misleading commercial advertisements regarding product performance, function, quality, sales status, or user evaluations, or from assisting others through fabricated transactions or false reviews. Article 11 prohibits deceptive prize-based sales practices, including fraudulent schemes or unclear redemption conditions that mislead consumers. Article 13 prohibits the use of data, algorithms, technology, or platform rules to influence user choices or disrupt the normal operation of lawful network products or services, while Article 14 prohibits platform operators from coercing sellers into below-cost pricing through pricing rules. Article 21 requires platform operators to establish fair competition rules, reporting and complaint-handling mechanisms, preserve records, and notify supervisory departments. Violations of these provisions are subject to administrative orders and fines ranging from CNY 50'000 to CNY 5 million under Articles 25 to 30. Articles 33 and 34 further establish obligations to record administrative penalties in operators’ credit records and prioritise civil liability where assets are insufficient to satisfy all obligations.
Original source