Shanghai epidemic, overcoming difficulties together, operating with integrity, putting people first
Compiled from The Paper
Recently, the COVID-19 situation in Shanghai has been quite severe, and the biggest problem for residents is securing three meals a day. In this difficult time, we should be joining hands to get through it together, yet there are always some vendors taking advantage of the situation to inflate prices and make a quick profit, unaware that such behavior is not only morally despicable but also legally unacceptable.
Case 1: Failure to Clearly Mark Prices in a Store
Recently, a video was exposed on the Douyin platform showing many residents gathering to purchase vegetables and other daily necessities in a sealed-off residential area on a certain street. After receiving this information, the Shanghai market regulatory authorities, with the consent of the street’s epidemic prevention office and equipped with protective measures, went to the sealed-off area the next morning to conduct supervision and inspection. During the inspection, it was found that two individual convenience stores in the sealed-off area had not placed any price tags to indicate the names, prices, and pricing units of the "vegetables," "eggs," and other goods being sold.
The parties involved had already received the "Reminder and Warning Letter on Stabilizing Prices of Basic Livelihood Goods and Epidemic Prevention Supplies" during the epidemic period, and were fully aware that they should strictly implement the requirement of clearly marking prices when selling goods, but they still failed to comply.
The actions of the two parties violated the provisions of Article 13, Paragraph 1 of the "Price Law of the People's Republic of China," constituting an illegal act of failing to clearly mark prices. The case is currently being handled promptly.
Price Law of the People's Republic of China
Article 13
When selling goods, purchasing goods, or providing services, business operators shall clearly mark prices in accordance with the regulations of the government price authorities, specifying the product name, place of origin, specifications, grade, pricing unit, price, or service items, fee standards, and other relevant information.
Business operators shall not sell goods at prices higher than those marked, nor charge any fees not clearly indicated.
Case 2: Yan Mou
Price Gouging Case
The market regulatory authority recently received a consumer complaint reporting that a community group-buy vegetable bundle contained only one lettuce, two tomatoes, and three heads of Chinese cabbage, with a mismatch between quality and price. Investigation revealed that the vegetables were produced and sold by Yan Mou. Recently, Yan Mou received orders for 1,720 vegetable bundles, each agreed to include 2 jin of celery, 2 jin of white radish, 1 jin of tomatoes, and 1 jin of cucumbers. Among the same batch of orders, Yan Mou provided only one lettuce (approximately 1.5 jin), two tomatoes (approximately 1 jin), and three heads of Chinese cabbage (approximately 1 jin) for 200 of the bundles. Despite no significant change in costs, the selling price was substantially increased.
The party's actions violated Article 14, Paragraph 1, Item (3) of the Price Law of the People's Republic of China and Article 3, Paragraph 1, Item (1) of the Guiding Opinions on Identifying Price Gouging Violations During Epidemic Prevention and Control, constituting the illegal act of price gouging. According to Article 6, Paragraph 1, Item (1) of the Provisions on Administrative Penalties for Price Violations, using other means to drive up prices, causing rapid and excessive increases in commodity prices, the party is ordered to rectify the situation, confiscate illegal gains, and impose a fine of up to five times the illegal gains. The market regulatory authority has issued a Notice of Administrative Penalty, proposing to impose a heavy fine of five times the illegal gains, totaling 11,000 yuan.
Price Law of the People's Republic of China
Article 14: Business operators shall not engage in the following unfair pricing practices:
……
(3) Fabricating or spreading price increase information, driving up prices, or causing excessive price increases for goods;
……
[1] The author's perspective
The so-called clear pricing refers to a method by which business operators openly indicate the prices of goods and service charges when selling, purchasing goods, or providing services, with the aim of giving consumers a basic understanding before purchasing goods or receiving services. This is a fundamental system for price management by business operators, which facilitates both the management of prices by operators and consumers' selection of goods and services, as well as their supervision. Therefore, it is an effective measure to prevent illegal pricing activities and protect consumers' price rights, while also serving as an important means to encourage business operators to strengthen price management and strictly implement price laws and regulations. Moreover, it is a key legal system to ensure fair competition and maintain normal market price order.
During this pandemic, ensuring people's livelihoods is of utmost importance. It is hoped that all business operators will strengthen price self-discipline, ensure compliance with regulations such as clear pricing for goods, and that law enforcement departments will fully maintain stable and orderly market prices. Only by working together can we get through this difficult period.
