Penalty Provisions

Article 49 An enterprise producing products that do not conform to the state standard or the specific trade standard for ensuring physical health and the safety of human body and property shall be ordered to stop production and sale; the products illegally produced and sold shall be confiscated; a fine less than three times the value of the products illegally produced or sold shall be imposed upon the producer or seller; where there are illegal proceeds, such proceeds shall be confiscated; if the circumstances are serious, the business license shall be revoked. If the case is serious enough to constitute a crime, criminal responsibility shall be investigated.

Article 50 If a producer or a seller is found adulterating their products or posing fake ones as genuine, inferior ones as superior or sub-standard ones as standard, it shall be ordered to stop production or selling; the products illegally produced or sold shall be confiscated and a fine of more than 50% but less than three times the value of the products illegally produced or sold shall be imposed; where there are illegal proceeds, such proceeds shall be confiscated; if the circumstances are serious, the business license shall be revoked; if the case is serious enough to constitute a crime, criminal responsibilities shall be investigated.