(Originally adopted at the Twenty-sixth Meeting of the Standing¹ Committee of the First Shenzhen Municipal People’s Congress on November 2,1994, as revised in accordance with the Decision on Revision of Articles 15 and 18 of Rules of Shenzhen Special Economic Zone on Implementing³ the Law of the People’s Republic of China on Anti-Unfair Competition of the Nineteenth Meeting of the Standing Committee of the Second Shenzhen Municipal People’s Congress on December 17,1997.)
颁布日期：19971217 　实施日期：19971217 　颁布单位：深圳市人大常委会

　　Article 1 In order to maintain the market order of Shenzhen Special Economic Zone (hereinafter referred to as Special Zone), encourage and protect fair competition, prohibit the behaviors of unfair competition, protect the lawful⁴ rights and interests of the operators and consumers, and ensure the healthy development of the socialist⁵ market economy, these rules are formulated⁶ according to the basic principles of the Law of the People’s Republic of China on Anti-unfair Competition (hereinafter referred to as the law of anti-unfair competition), and in accordance with the actual circumstances of Special Zone.

　　Article 2 The operators engaging in operation in Special Zone must observe the law of anti-unfair competition and these rules.

　　Article 3 The people’s government at all levels of Shenzhen Municipality shall take measures to strengthen the administration of the market, prohibit the behaviors of unfair competition, and create perfect circumstances and conditions for the establishment of the mechanism⁷ of fair competition.

　　The administrative⁸ department of industry and commerce of Shenzhen Municipal People’s Government (hereinafter referred to as the municipal government) is the department for supervising and inspecting the unfair competition in Special Zone (hereinafter referred to as the department of supervision⁹ and inspection¹⁰); If the laws and regulations stipulate¹¹ that the unfair competition shall be supervised and inspected by other departments, such laws and regulations shall be observed.

　　The other administrative departments of the municipal government shall support and cooperate the department of supervision and inspection to perform the functions of supervision and inspection according to law within the scope of their respective functions and powers.

　　Article 4 It is encouraged, supported and protected that all the organizations and individuals supervise the behaviors of unfair competition. All the organizations and individuals have rights to report the behaviors of unfair competition to the department of supervision and inspection. The department of supervision and inspection shall keep confidential¹² for the reporters, as well as honor and reward the persons meritorious¹³ to the reports.

　　The concrete measures and standards of honor and reward shall be stipulated¹⁴ separately by the department of supervision and inspection.

　　Article 5 The operators shall not take the following unfair means in their operation:

　　(1) unilaterally propagating their commodities to belittle¹⁵ the commodities of other operators and mislead the consumers to purchase;

　　(2) impersonating other’s name in the selling operation by means of leasing others’ special counters, grounds or equipments and so on;

　　Article 6 For the goods that have not acquired the patent, the operators shall not use “patent” or other words, languages or numbers which means they have acquired the patent right on them or in the advertisement relevant to them with the aim to make misleading fictitious¹⁶ denotation¹⁷.

　　Article 7 The public service enterprises or other monopolistic operators according to law shall not have the following behaviors to restrict competition:

　　(1) to restrict that the purchasers may only purchase and use relevant commodities provided by the operators incidentally or other operators they appoint;

　　(2) to force the purchasers to purchase the unnecessary commodities and accessories provided by the operators or other operators they appoint;

　　(3) to create difficulties for the purchasers who boycott¹⁸ the behaviors of restricting competition by refusing, suspending and cutting down the supply of relevant commodities or collecting fees recklessly;

　　(4) other behaviors restricting competition.

　　Article 8 The institutions with administrative functions shall not abuse their powers to restrict others to purchase the commodities provided by the operators they appoint with the aim to squeeze other operators out.

　　Article 9 The operators shall not take the measures of on-site demonstration¹⁹, literal identification, news media and so on to make misleading false propaganda on the commodities’ prices, names, qualities, specifications²⁰, manufacturing measures, etc.

　　Article 10 The operators shall not have the following behaviors of unfair competition with the aim to squeeze the competitive opponent out:

　　(1) to illicitly²² impede²³ others to set up normal trade relations with the competitive opponents or to illicitly compel others to sever²⁴ the normal trade relations with the competitive opponents;

　　(2) to obstruct²⁵ the normal work of the competitive opponents’ operators and managers, technician and other personnel, or to disturb and hinder the normal operation of the competitive opponents.

　　Article 11 The operators shall not take coercive, deceptive²⁶ or other illicit²¹ measures to impair²⁷ or deprive of the competitive competence²⁸ of the competitive opponents or to impel²⁹ them to withdraw or give up normal competition.

　　Article 12 When the department of supervision and inspection supervises and inspects the behaviors of unfair competition, it has rights to exercise the following functions and powers:

　　(1) to exercise the functions and powers stipulated in Article 17 of the law of anti-unfair competition;

　　(2) to inspect the properties relevant to the behavior of unfair competition. If it is necessary, with an approval of the chief administrative officers of the district or superior departments of supervision and inspection, the law enforcement personnel may take the administrative coercive measures of sealing up, detainment, suspension of payment and so on to the properties according to the stipulated procedures, and make settlements within the stipulated periods;

　　(3) to periodically proclaim the operators who have serious behaviors of unfair competition, the main facts of their behaviors of unfair competition and other matters that need to be proclaimed to the society.

　　Article 13 When the working staff of the department of supervision and inspection supervises and inspects the behaviors of unfair competition, they shall show the credentials³⁰ of inspection. If they do not show the certificate of inspection, the inspected operators have rights to refuse the inspection.

　　Article 14 If the operators violate these rules and cause damages to the infringed³² operators, they shall bear the responsibilities of compensation for damages. If the losses of the infringed operators are difficult to calculate, the amount of compensation is the profits that the infringers have made from the infringement³³ during the infringement periods. The infringers shall also bear the reasonable costs that the infringed operators have paid to investigate the infringers’ behaviors of unfair competition that infringe³¹ their lawful rights and interests.

　　If the lawful rights and interests of the infringed operators are damaged by the behaviors of unfair competition, the operators may complain to the department of supervision and inspection or file lawsuits³⁵ to the people’s court.

　　If the credit of the infringed operators is damaged by the behaviors of unfair competition of the infringers, the infringed operators may apply to the people’s courts for taking necessary measures to rehabilitate³⁶ their reputation.

　　Article 15 If the operators violate these rules and have one of the following behaviors, the department of supervision and inspection shall order them to stop the illegal behaviors and eliminate effects, confiscate³⁷ the illegal gains and goods, and impose a fine one time of the illegal volume of business:

　　(1) violating the provisions of the second subparagraph of Article 5 of these rules;

　　(2) violating the provisions of Article 6 of these rules;

　　(3) violating the provisions of Article 8 of these rules;

　　(4) violating the provisions of Article 10 of these rules;

　　(5) violating the provisions of Article 11 of these rules.

　　Article 16 If the operators violate these rules and have one of the following behaviors, the department of supervision and inspection shall order them to stop the illegal behaviors, confiscate the illegal gains, and may impose a fine more than 50,000 yuan but less than 200,000 yuan according to the circumstances:

　　(1) violating the provisions of Article 7 of these rules;

　　(2) violating the provisions of Article 9 of these rules.

　　Article 17 If the operator violate the provisions of the first subparagraph of Article 5 of these rules, the department of supervision and inspection shall order them to stop the illegal behaviors and eliminate effects, and may impose a fine more than 10,000 yuan but less than 100,000 yuan according to the circumstances.

　　Article 18 If the advertising³⁸ operators violate the provisions of Article 9 of the law of anti-unfair competition to act as agent, design, produce and issue the false advertisements in the circumstances of knowing or having reasons to know, the department of supervision and inspection shall order them to stop the illegal behaviors and rectify³⁹ them publicly, confiscate the illegal gains, and may impose a fine more than 10,000 yuan but less than 200,000 yuan according to the circumstances; If the circumstances are serious, the department of supervision and inspection may revoke⁴⁰ the Permit of Advertising Operation and the Business License⁴¹.

　　Article 19 If the operators violate the provisions of Article 12 of the law of anti-fair competition to engage in tied sale or add other unreasonable⁴² conditions, violating the purchasers’ intents, the department of supervision and inspection shall order them to stop the illegal behaviors, and impose a fine one time of the illegal volume of business.

　　Article 20 If the operators violate these rules and produce heavy influence to the society, in case the circumstances are serious enough to constitute crimes, the judicial⁴³ department shall prosecute⁴⁴ their criminal responsibilities according to law.

　　Article 21 If the operators have the behaviors of unfair competition and cause damages to other operators, their legal representatives shall take the corresponding responsibilities with the operators.

　　Article 22 If the parties are not satisfied with the punishment decisions made by the district department of supervision and inspection, they may apply for reconsideration to the municipal department of supervision and inspection within 15 days from receipt of the punishment decisions.

　　If the parties are not satisfied with the punishment decisions made by the municipal department of supervision and inspection, they may apply for reconsideration to the organization for administrative appeal of the municipal government within 15 days from receipt of the punishment decision.

　　If the parties are not satisfied with the decisions of appeal, they may file lawsuits to the people’s court within 15 days from receipt of the decision of review. The parties may also file lawsuits directly to the people’s courts.

　　During the periods of appeal and lawsuit³⁴, the enforcement of sealing up, detainment, suspension of payment and the penalty decision shall not be suspended, except the laws and regulations have special provisions. If the parties fail to apply for reconsiderations or file lawsuits, and to implement² the punishment decisions within the time limit, the department of supervision and inspection making the punishment decisions shall apply to the people’s court for coercive enforcement.

　　Article 23 When the department of supervision and inspection supervises and inspects the illicit behaviors, it shall exercise the functions and powers according to law; If it causes damages to the operators’ lawful properties because it abuses its powers, it shall take the responsibilities of administrative compensation according to law.

　　Article 24 The limitation of actions to the behaviors of unfair competition is 2 years, which is calculated from the date when the infringement terminates.

　　Article 25 These rules shall go into effect as of January 1, 1995.

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