New regulations to mitigate penalties for minor administrative violations

The State Administration for Market Regulation (SAMR) recently unveiled two new regulatory lists to address public concerns surrounding disproportionate penalties for minor administrative infractions. These lists come into effect as part of the SAMR's efforts to align with the "Guiding Opinions of the State Council on Further Regulating and Supervising the Setting and Implementation of Fines."

A view of Futian. Photo from Dute News

The new regulations specifically aim to curb the societal issues related to heavy penalties for minor cases and inconsistent penalties for similar cases. After a thorough review of violation impacts, the subjective culpability of offenders, and any potential gains from infractions, the SAMR identified 12 categories of initial offenses that will now be exempt from penalties.

The “First Violation Not Punished List” encompasses eight types of initial offenses deemed to have minor impacts and that are corrected promptly by the violator. Meanwhile, the “Exemption from Penalty for Minor Violations List” includes four categories of violations that are also considered minor and have been swiftly rectified, without causing any adverse consequences.

To ensure that these measures are implemented effectively and fairly, the SAMR has established five guiding principles: maintaining lawful administrative practices, combining punitive measures with educational initiatives, safeguarding public rights, ensuring strict compliance with enforcement procedures, and applying scientific methods to the formulation of penalty lists.

For cases listed under the "first violation not punished" or "minor violation exempt from penalty," specific directives have been issued. These include instructing offenders to immediately cease illegal activities, promoting swift rectification efforts, legally compensating affected consumers, and adhering to mandatory recall obligations where applicable.