On 18 May 2023, China’s State Administration for Market Regulatory issued the “Measures for the Supervision and Administration of Contracts” (hereinafter the “Measures”, 合同行政監督管理辦法).
The highlights of the Measures are as follows.
- An operator entering into a contract with a consumer by using standard contract terms shall draw the consumer’s attention to the goods’ or services’ quantity and quality, price or cost, time and method of performance, safety precautions and risk warnings, after-sales service, civil liability and other contents of major interest to the consumer by separate notice, bold font, pop-up window, and other significant means, and make an explanation as required by consumers.
- When an operator concludes a contract with a consumer, it should not mitigate or exempt its liability by utilizing standard clauses or other means. For instance, an operator may not exempt or mitigate its legal liability for causing personal injury to a consumer.
- When entering into a contract with a consumer, an operator should not set forth provisions to increase the liability of consumers or to exclude or limit the rights of consumers by utilizing standard terms or other means. For instance, an operator may not specify in the contract that it has the unilateral or final right of interpretation.
Contributors: CJO Staff Contributors Team
