全球法律实务指南：产品责任与安全2024

CHAMBERSGLOBALPRACTICEGUIDES

ProductLiability

&Safety2024

Definitivegloballawguidesoffering

comparativeanalysisfromtop-rankedlawyers

China:Law&Practice

YueDai,ZhenghaoLiandXiaokunYuanKing&WoodMallesons

CHINA

LawandPractice

Contributedby:

YueDai,ZhenghaoLiandXiaokunYuan

King&WoodMallesons

Contents

1.ProductSafetyp.5

1.1ProductSafetyLegalFrameworkp.5

1.2RegulatoryAuthoritiesforProductSafetyp.6

1.3ObligationstoCommenceCorrectiveActionp.6

1.4ObligationstoNotifyRegulatoryAuthoritiesp.8

1.5PenaltiesforBreachofProductSafetyObligationsp.8

2.ProductLiabilityp.9

2.1ProductLiabilityCausesofActionandSourcesofLawp.9

2.2StandingtoBringProductLiabilityClaimsp.11

2.3TimeLimitsforProductLiabilityClaimsp.11

2.4JurisdictionalRequirementsforProductLiabilityClaimsp.11

2.5Pre-actionProceduresandRequirementsforProductLiabilityClaimsp.12

2.6RulesforPreservationofEvidenceinProductLiabilityClaimsp.12

2.7RulesforDisclosureofDocumentsinProductLiabilityCasesp.12

2.8RulesforExpertEvidenceinProductLiabilityCasesp.12

2.9BurdenofProofinProductLiabilityCasesp.12

2.10CourtsinWhichProductLiabilityClaimsAreBroughtp.13

2.11AppealMechanismsforProductLiabilityClaimsp.14

2.12DefencestoProductLiabilityClaimsp.14

2.13TheImpactofRegulatoryComplianceonProductLiabilityClaimsp.15

2.14RulesforPaymentofCostsinProductLiabilityClaimsp.15

2.15AvailableFundinginProductLiabilityClaimsp.15

2.16ExistenceofClassActions,RepresentativeProceedingsorCo-ordinated

ProceedingsinProductLiabilityClaimsp.16

2.17SummaryofSignificantRecentProductLiabilityClaimsp.16

3.RecentPolicyChangesandOutlookp.18

3.1TrendsinProductLiabilityandProductSafetyPolicyp.18

3.2FuturePolicyinProductLiabilityandProductSafetyp.21

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CHINALawandPractice

Contributedby:YueDai,ZhenghaoLiandXiaokunYuan,King&WoodMallesons

King&WoodMallesonsisaninternationallawfirmheadquarteredinAsia.InChina,thefirmhasover490partnersand2,000lawyers,with17officesinBeijing,Shanghai,Shenzhen,Guangzhouandothermajorcities.Aroundtheworld,thefirmhasover3,000lawyers,withofficesacrossdifferentregions.King&WoodMallesonshasexpertiseinlitigationanddisputeresolution,regulatoryandcompliance,bankingandfinance,corporate/M&A,securitiesandcapitalmarkets,andintellectualproperty.Thefirm’sdisputeresolutionteaminChinahasover

100partnersand400lawyers,andhasexper-tiseinproductliabilityandsafetymatters.Ithasassistedsuppliers,manufacturersanddistribu-torsinmountingcasesinvolvingproductliabil-ityissues.Recentexperienceincludesrepre-sentingamultinationaltechnologycompanyinhandlingalargequantityofconsumerlitigationrelatedtoproductliabilityandsafetydisputes,respondingtoadministrativeinquiriesandin-vestigations,andrepresentingmajorautomo-tivemanufacturersinproductqualitydisputes.

Authors

YueDaiisapartnerinthe

disputeresolutionandlitigationteamatKing&WoodMallesons.Shehasspecialisedinproductliabilitylawformanyyearsandhasactedinnumerousproduct

liabilitycasesonbehalfofwell-known

manufacturers.Shealsospecialisesincross-borderlitigationandarbitrationpractice,

includingshareholding,trade,constructionandderivativesdisputes.Yueservesasacouncil

memberoftheBeijingLawyersAssociation,andasdeputydirectoroftheForeignAffairsCommitteeandCivilProcedureLaw

Committee.Shehaspublishedwidelyintheareasofproductliabilityandregulation.

ZhenghaoLiisapartnerinthedisputeresolutionandlitigationteamatKing&WoodMallesons.Hehasactedforwell-known

multinationalcompanies,

productmanufacturers,

investmentinstitutionsandotherorganisations

incommercialarbitrationandlitigationinvolvingsalescontractdisputes,online

contractdisputesandpersonalinjurydisputes.Healsoregularlyadvisesmultinational

companiesintheelectronics,technologyandinternetsectorsonavarietyofChineselegalandregulatorycompliancematters,includingproductqualitycompliance,consumerrightsprotection,commercialadvertisingand

marketing,andrecallofconsumergoods.

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CHINALawandPractice

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XiaokunYuanisalegalassistantinthedispute

resolutionandlitigationteamatKing&WoodMallesons.Hehasassistedinpreparingfor

commercialarbitrationsand

litigationsovercontractdisputes.Xiaokunhasalsoadvisedleadingmultinationalcompaniesintheelectronics,technologyandinternet

sectorsonavarietyofChineselegalandregulatorycompliancematters.

King&WoodMallesons

18thFloor,EastTower,WorldFinancialCenterNo1DongsanhuanZhonglu

ChaoyangDistrictBeijing100020

PRC

Tel:+861058785395Fax:+861058785566

Email:daiyue@Web:/en

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CHINALawandPractice

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1.ProductSafety

1.1ProductSafetyLegalFramework

“Products”inthecontextofChineselawrefertogoodsthathavebeenprocessedormanufac-turedforsale.InChina,acombinationoflaws,regulationsandrulesissuedbythelegislativeandadministrativeagencies,aswellasinterpre-tationsissuedbythejudicialorgans,togetherformacomplicatedlegalframeworkregulatingproductsafety.Thekeylegalinstrumentsgov-erningproductsafetyincludethefollowing.

GeneralLaws

Generallegislationgoverningproductsafetyincludes:

•theCivilCodeofthePeople’sRepublicofChina(the“CivilCode”),effectiveasof1January2021;

•theProductQualityLawofthePeople’s

RepublicofChina,effectiveasof1Septem-ber1993,amendedon29December2018;and

•theLawofthePeople’sRepublicofChinaontheProtectionofConsumerRightsandInter-ests,effectiveasof1January1994,amendedon25October2013.

Sector-SpecificLaws

Anumberoflawsandregulationsregulatethesafetyandqualityofspecificproducts.Thesesector-specificinstrumentsinclude:

•theFoodSafetyLawofthePeople’sRepublicofChina(effectiveasof1June2009,amend-edon29April2021);

•theLawofthePeople’sRepublicofChinaontheQualityandSafetyofAgricultural

Products(effectiveasof1November2006,amendedon2September2022);

•thePharmaceuticalAdministrationLawofthePeople’sRepublicofChina(effectiveasof1July1985,amendedon26August2019);

•theLawofthePeople’sRepublicofChina

onImportandExportCommodityInspection(effectiveasof1August1989,amendedon

29April2021);

•theAdministrativeRegulationsontheRecallofDefectiveAutomotiveProducts(effectiveasof1January2013,amendedon2March2019);

•theRegulationontheSupervisionandAdmin-istrationofMedicalDevices(effectiveasof1April2000,amendedon9February2021);

•theImplementingRegulationfortheFood

SafetyLawofthePeople’sRepublicofChina(effectiveasof20July2009,amendedon11October2019);

•theInterimMeasuresfortheSupervision

andAdministrationoftheQualityandSafetyofFood-RelatedProducts(effectiveasof1March2023);

•theMeasuresfortheImplementationofthe

RegulationontheAdministrationoftheRecallofDefectiveAutoProducts(effectiveasof1

January2016,amendedon23October2020);

•theProvisionsonAdministrationofMotorVehicleEmissionRecalls(effectiveasof1July2021);

•theInterimProvisionsonAdministrationofConsumerProductRecalls(effectiveasof1January2020);and

•theAdministrativeMeasuresforMedical

DeviceRecalls(effectiveasof1May2017).

ProductStandardisation

AccordingtotheStandardisationLawofthePeople’sRepublicofChina(effectiveasof1April1989,amendedon4November2017),theStandardisationAdministrationofChinaisresponsibleforadministeringthestandardisa-tionofproducts.Todate,theStandardisation

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Administrationhasreleasedmanynationalstandardsprovidingdetailedguidelinesonthesafetyassuranceofspecificproducts.

StandardsinChinacanbeeithermandatoryorrecommended.Standardsbeginningwith“GB”containmandatoryrequirements;eg,theHygienicStandardforDriedFruits(GB16325-2005)andtheStipulationProtectingDriversFromInjurybyMotorVehicleSteeringMecha-nism(GB11557-2011).Thestandardsbeginningwith“GB/T”arerecommended;eg,theEduca-tionRobotSafetyRequirements(GB/T33265-2016)andtheDescriptionSpecificationontheRiskInformationofConsumerProductsSafety(GB/T30135-2013).

1.2RegulatoryAuthoritiesforProductSafety

UnderthecurrentproductqualityregulatoryframeworkinChina,administrativeauthoritiesexercisetwotypesofregulatorypowers:gen-eralandspecific.

GeneralRegulatoryAuthority

TheStateAdministrationforMarketRegulation(SAMR)andlocalmarketsupervisionauthoritiesareresponsibleforsupervisingandregulatingproductqualityandsafety,coveringproductsmanufacturedinChinaandproductsimport-edintoChina.Inaddition,marketsupervisionauthoritiesarealsoresponsibleforthepun-ishmentofillegalactivitiesrelatedtoproductquality.TheStandardisationAdministrationofChina,asabranchoftheSAMR,organises,co-ordinatesandsupervisestheimplementationofstandards,includingstandardsonproductqual-ityandsafety.

RegulatoryAuthorityforSpecificProducts

Otherthanthegeneralregulatoryauthoritydescribedabove,specificregulatorsalsohave

thepowertosuperviseproductsafetyintherelevantindustrialsectors.Forexample,theNationalMedicalProductsAdministrationisinchargeofthesupervisionandadministrationofproductsafetyinthedrugs,medicaldevicesandcosmeticssector.

1.3ObligationstoCommenceCorrectiveAction

UnderChineselaw,ifaproductisfoundtobedefectiveafteritisputintocirculation,theman-ufacturerandthesellermustpromptlyadoptremedialmeasuresorcommencecorrectiveactions.Commonremediesrequiredbylawincludesuspendingsales,providingwarnings,andimplementingdefectiveproductrecalls.

SuspendingSales

Whenamanufactureridentifiesdefectsinitsproducts,itisrequiredbylawtosuspendmanu-facturing,saleorimportationoftheproducts.

ProvidingWarnings

Awarningreferstoareminderoftherelevantdangersassociatedwiththeproduct,oranexplanationofhowtocorrectlyusetheproducttoavoidthesedangers.Itisimportanttodirectusers’attentiontoexistingorpotentialdangerssoastopreventorreduceharm.

Requirementstoprovidewarningsaregenerallystatedinspecificproductrecallregulations.Forexample,undertheAdministrativeRegulationsontheRecallofDefectiveAutomotiveProducts,themanufacturerofdefectiveautomotiveprod-uctsisrequiredtonotifyautomobileownersofthedefectinitsautomobileproductandtheemergencystepstotaketoavoiddamagesorharm.

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ImplementingProductRecalls

Amanufacturerisrequiredtomakearecallwhenitisinformed,bywayofself-check,reportsorcomplaintsbythegeneralpublic,ornotificationfromaregulatorydepartment,thattheprod-uctsitproducesorsellsaredefective.Wherethemanufacturerfailstomakearecall,ortherelevantqualityinspectiondepartmentsdeemitnecessary,theregulatoryauthoritiesmayorderaproductrecalltobeconducted.Detailedproce-duresandrequirementsforconductingproductrecallsareusuallyfoundintheregulationsforspecificproductsasdiscussedbelow.

Recallofconsumerproducts

TheInterimProvisionsontheAdministrationofConsumerProductRecallsDefectsregulatetherecallofconsumerproducts.Undertheregu-lations,recallisnecessarywhendefectsthatcouldcauseunreasonabledangercompromis-ingpersonaland/orpropertysafetyarefoundinthesamebatch,modelnumberortypeofconsumergoods,duetoissueswiththeprod-uctdesign,manufacturing,warning,etc.Recallinformationmustbepublishedina“well-known”publicationthatiseasilyaccessibletothepublic.Suchwell-knownpublicationsincludenewspa-persandperiodicals,websites,andradioandtelevisionchannels.

Recallofdefectiveautomotiveproducts

TheAdministrativeRegulationsontheRecallofDefectiveAutomotiveProductsregulaterecallsofautomotiveproducts.Accordingtothesereg-ulations,theSAMRsupervisesandadministerstherecallofdefectiveautomotiveproductsinChina.Whendefectsarefoundtoexistinthesamebatch,modelnumberortypeofautomo-tiveproductduetoissueswithproductdesign,manufacturingorlabels,amanufacturermustpreparearecallplan,communicatetheplantotheautomobilesellers,andfiletheplanwith

theSAMR.Themanufacturerisalsorequiredtoreleaserecallinformationinaneasilyaccessiblemannertothegeneralpublic.

Inaddition,pursuanttotheAdministrativeRegu-lationsonMotorVehicleEmissionsRecall,Chinahasalsointroducedanemissionrecallsystemformotorvehicles,underwhichvehiclemanu-facturersarerequiredtorecallmotorvehicleswith“emissionhazards”.TheemissionrecallregimeisadministeredbytheSAMRjointlywiththeMinistryofEcologyandEnvironment.

Recallofmedicaldevices

UndertheMeasuresfortheAdministrationofMedicalDeviceRecalls,medicaldevicerecallsaredividedintothreeclassesaccordingtotheseverityofthedefects:

•ClassIrecall–useofthemedicaldevicemaycauseorhavecausedserioushealthhazards;

•ClassIIrecall–useofthemedicaldevicemaycauseorhavecausedtemporaryorreversiblehealthhazards;and

•ClassIIIrecall–useofthemedicaldevicehasalowerlikelihoodofcausinganyhazardbut

suchmedicaldevicestillneedstoberecalled.

Thedifferentclassesofrecallsfollowdifferentnotificationtimelimitsandtherecallannounce-mentsrequiredifferentlevelsofmediaexposure,accordingtotheclass.

TheMeasuresfortheAdministrationofMedicalDeviceRecallsrequire“medicaldevicemanufac-turers”(includingthemedicaldeviceregistrantorfilingholder,orthedomesticagentappointedbytheoverseasmanufacturerofimportedmedi-caldevices)toberesponsibleforco-ordinatingproductrecalls.However,itshouldbenotedthatundertheRegulationonAdministrationandSupervisionofMedicalDevicesamended

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in2021,therecallobligationexplicitlylieswiththemedicaldeviceregistrantorfilingholder.

1.4ObligationstoNotifyRegulatoryAuthorities

Whereamanufacturerorasellerhasdiscov-eredadefectinitsgoodsorservices,whichmayharmpersonalsafetyorpropertysecurity,itmustimmediatelyreportthedefecttotherelevantadministrativeauthorities.Thisreportingobliga-tioniswidelyrequiredinmanyrecallregulationsforspecificproducts.

UndertheMeasuresfortheImplementationoftheRegulationontheAdministrationoftheRecallofDefectiveAutoProducts,uponlearningofpotentialdefectsinitsautomobileproducts,themanufacturermustorganiseaninvestiga-tionandanalysisthereof,andtruthfullyreporttheresulttotheSAMR.Sellers,repairers,rentalserviceprovidersorsparepartmanufacturersarealsorequiredtoreportanydefectstheyiden-tifyintheirbusinessoperationtotheSAMRandnotifythemanufacturerofsuchinformation.

UnderthecurrentMeasuresfortheAdministra-tionofMedicalDeviceRecalls,amedicaldevicemanufacturermustimmediatelyreportanyofitsmedicaldeviceproductsthatarefoundtobedefectivetotheprovincialfoodanddrugsuper-visionandadministrationdepartment.Medicaldeviceoperationenterprisesandusersarealsorequiredtoimmediatelyreporttotheirprovin-cialfoodanddrugsupervisionandadministra-tiondepartmentandnotifythemanufacturerorsupplierofdefects.Inparticular,ifthemedicaldeviceuserisamedicalinstitution,itmustalsoreportdevicedefectstoitsprovincialhealthadministrativedepartment.Asdiscussedin1.3ObligationstoCommenceCorrectiveAction,whiletheterm“medicaldevicemanufacturer”isrelativelybroadinscopeunderthemeas-

ures,accordingtothe2021amendmenttotheRegulationonAdministrationandSupervisionofMedicalDevices,thedutyofensuringproductqualityandimplementingproductrecallsnowdirectlylieswiththemedicaldeviceregistrantorfilingholder.

1.5PenaltiesforBreachofProductSafetyObligations

Failuretocomplywithproductsafetyobligations

maygiverisetocivil,administrative,andcriminalliabilities.

CivilLiability

Ifaproductcausespersonalinjuryorpropertydamage,themanufacturermustcompensateanylossessufferedbytheinfringedperson.ProductliabilityforthemanufacturerisaformofstrictliabilityunderChineselaw,whichmeansthatthemanufacturerisliablefordamagesregardlessofwhetherthereisanyfaultontheirpart.Theseller,ontheotherhand,isliablefordamagesonlyifitisatfaultfortheinjuryorloss.However,theinfringedpersonmayalsobringclaimsdirectlyagainsttheseller.Ifthefaultulti-matelylieswiththemanufacturer,thesellermayaskthemanufacturertoreimburseitsdamagesafteritcompensatestheplaintiff.

Themanufacturerandtheselleralsobearliabilitywhentheirfailuretoadoptpromptandeffectivecorrectiveactionsleadstoaggravateddamages.Inaddition,ifthemanufacturerorsellerknow-inglycontinuestomanufactureorselladefec-tiveproduct,orfailstotakeeffectiveremedialmeasures,andthedefectresultsindeathorseri-ousdamagetothehealthofanotherperson,themanufacturerorsellerwillbeliableforpunitivecompensation.Suchpunitivecompensationwillbedeterminedbythecourtonacase-by-casebasis.

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AdministrativeLiability

Theregulatorygovernmentauthoritiesmayimposeadministrativesanctionsonmanufac-turersandsellerswhentheirproductfailstoconformtoproductsafetystandards,includingbyrequestingrectificationofdefect,imposingfines,ceasingtheoperation,andrevokingthebusinesslicence.

Inaddition,themanufacturerandsellermightalsobesubjecttoadministrativepenaltiesiftheydonotperformtheirproductrecallobligations.Forexample,whereanautomobilemanufacturerbreachestheAdministrativeRegulationsontheRecallofDefectiveAutomotiveProductsbyfail-ingtostopmanufacturingtheproducts,sellingorimportingdefectiveautoproducts,withhold-inginformationaboutthedefectsorrefusingtoimplementarecallasordered,theregula-toryauthoritiesmayorderittomakecorrection,imposeafineof1–10%ofthemonetaryvalueofthedefectiveproducts,andconfiscateanyillegalgains.

CriminalLiability

Iftheproductsarefoundtohavecauseddeath,seriouspersonalinjury,orseriouspropertydam-age,theresponsiblemanufacturersandsellersmaybecriminallyliable.Forexample,inonecriminalcase,thedefendantwassentencedtoafixedtermofimprisonmentof12yearsandorderedtocompensateformedicalfees,nurs-ingfees,funeralexpensesandothercostsofthevictim’sfamilyforknowinglysellingcounterfeitmedicines,whichcausedthedeathofthevic-tim(seeCase(2018)Liao02XingChuNo59,decidedbyDalianIntermediatePeople’sCourt,LiaoningProvince).

2.ProductLiability

2.1ProductLiabilityCausesofAction

andSourcesofLawCausesofAction

Flawsintheproductitself

Firstly,aconsumercanbringaclaiminrespectofflawsinaproductwheretheflawhasnotcausedanylossesbeyondtheproductitself.UnderChineselaws,aproductmustconformtothequalitystandardsorspecificationsaspresentedbythemanufacturerandseller.Theconsumercanclaimagainstthesellerforrepair,replacementorreturn,andforanyfurtherdam-agescaused,ifaproductfallswithinoneofthefollowingcategories:

•theproductdoesnothavethepropertiesrequiredforuseandtheconsumerhasnotbeeninformedoftheflawsinadvance;

•theproductqualitydoesnotconformtothestandardsspecifiedontheproductorits

packaging;or

•theproductdoesnotmeetthequalitystatedintheinstructionsforuseordemonstratedviasamplesprovided.

Flawsthatcauseharm

Secondly,amanufacturerorseller,orboth,willbeliablefortortiftheyhavemanufacturedorsoldaproductthathascausedharmtoaper-son’slifeorproperty.Ingeneral,thefindingofproductliabilitydependsonthreeelements:

•theproductbeingdefective;

•thedamageorlosssuffered;and

•thecausalrelationshipbetweenthedefectiveproductandthedamage.

Amongtheseelements,themostimportantcon-ditioniswhetheraproductisdefective.Inthisregard,productdefectshavebeencategorised

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intothreeclasses:designdefects,manufactur-ingdefects,andinadequatewarningsorinstruc-tions.

AccordingtoArticle46oftheProductQualityLaw,therearetwoteststodeterminetheexist-enceofproductdefect:(i)astatutorystandard,whichconsidersaproducttobedefectiveifitfailstomeetoneoftheapplicablenationalorindustrystandardsonpersonalorpropertysafety;and(ii)an“unreasonabledanger”stand-ard,whichconsidersaproducttobedefectiveifitunreasonablyendangersthelifeorpropertyoftheconsumer.Inpractice,evenifaproductmeetstherelevantnationalorindustrystandard,thecourtwillstillproceedtoexaminewhetheritmeetsareasonableperson’sexpectationsregardingproductsafety.Therefore,compliancewiththestatutorystandardalonedoesnotnec-essarilyexemptaproductfromliability.

Administrativepenalties

Thirdly,manufacturersandsellersofdefectiveproductsmayalsobesubjecttoadministrativepenalties.Forexample,iftheproductmanufac-turedorsoldisnotinconformitywiththenation-alandindustrystandardsregardinghumanlifeandhealth,personalsafetyorpropertysafety,theregulatoryauthoritiescanstopthemanu-factureandsaleofdefectiveproducts,confis-catethedefectiveproducts,imposefinesonthemanufacturerandseller,andevenrevoketheirbusinesslicence(s).

Criminalpenalties

Finally,theCriminalLawofthePeople’sRepub-licofChina(effectiveasof1October1997,with12amendmentssofar)containsproduct-relatedcrimesrelatingtothemanufacturingandsaleoffakeandshoddyproductsinvarioussectorsincludingfood,cosmeticsandpharmaceuticals.Manufacturersandsellerswillfacecriminalpen-

altiesincasesofsevereproductliabilityconse-quencestriggeringoneofthesecrimes.

SourcesofLaw

Inthecontextofcivildisputes,thefollowingkeylegalinstrumentsgoverningproductliabil-ityallowthevictimtoraiseclaimsagainstthemanufacturerorthesellerofproductsforlossescausedbytheproductflawtotheproductitself,anddamagestopersonalorpropertysafety:

•theCivilCode;

•theLawontheProtectionofConsumerRightsandInterests(PCRI);and

•theProductQualityLaw.

Overtheyears,theSupremePeople’sCourtofChinahasalsoissuedaseriesofjudicialinter-pretationsinrelationtospecificissuesarisinginproductliabilitycases.Thesejudicialinstru-mentsguidecourtsintheirinterpretationofkeystatutorydefinitionsandconcepts.

SinceChinaisacivillawcountry,theprincipleofstaredecisisdoesnotapplyinproductliabilitylitigation.However,judgesmaystillbeguidedbyprecedents,particularlyiffoundinjudgmentsoftheSupremePeople’sCourtorothersuperiorcourtsaddressingsimilarfactsorlegalissues,oriftheareaoflawisunsettled.

Apartfromcivilliability,productqualitydisputesmayalsogiverisetoadministrativeliabilities.Inthisregard,theProductQualityLaw,thePCRIandotherlawsandregulationsforspecificprod-uctssetoutthepoweroftheadministrativeauthoritiestosuperviseproductliabilityandtoissueadministrativepenalties.

Lastly,criminalpenaltiescouldalsobetrig-geredincaseswheretheproductqualityissuehasresultedinsevereandfar-rangingconse-

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quences.Asmentionedabove,chapter3oftheCriminalLawcontainsasectiontitled“CrimesofManufacturingandSellingFakeandShoddyGoods”.Thissectionspecificallyprovidesstrictcriminalpenaltiesinrespectofthemanufactur-ingandsellingoffakeordefectiveproductsthatseverelyinfringeuponconsumers’interests.

2.2StandingtoBringProductLiabilityClaims

InChina’slegalsystem,consumersandotherinfringedindividualshavestandingtobringclaimsforproductliabilityiftheirrightsorinter-estsareimpaired.Anindividualcanfilealitiga-tionagainstthemanufacturerorsellerincourtbasedonacontractualrelationshiporanactofinfringement.

Multipleinjuredindividualsinvolvedinaproductliabilitycasemayhavestandingtobringrepre-sentativelitigation.Ifthenumberofinjuredindi-vidualsisunspecified,thecourtcouldpublishanannouncementtonotifypotentialplaintiffstoregisterasplaintiffs.Theregisteredplaintiffscannominateco-plaintiffstobetheirrepresentativesandparticipateinthelitigationontheirbehalf.Thejudgmentissuedinthesecaseswillbindallregisteredplaintiffs.Ifunregisteredpartiesfileadditionalclaims,theoriginaljudgmentwillapplyandbindtheunregisteredpartiesin