Sam was fined 30,000 yuan; do not misuse patent claims.

📅 2023-06-21 📂 Zhiming Hot Comments Zhiming Hot Comments 🏷️ #Promotion #Sam's #[3] Advertising Law #Advertising Materials #Illegal

Compiled from: Southern Metropolis Daily, Shenzhen News Network
 
Recently, Sam's (Shanghai) Supermarket Co., Ltd. was fined 30,000 yuan by the Shanghai Yangpu District Market Supervision and Administration Bureau for falsely claiming to have obtained a patent in an advertisement for a Japanese-style beef fried dumpling product.


 
 

Case review
In response, a Sam's customer service representative stated that no relevant national patent content introduction has been found for this product.
 
It is reported that the involved invention patent was previously submitted by the product's manufacturer, aiming to solve the problem of needing to precisely control oil and water amounts and the long time required when frying dumplings. It is currently still in the "substantive examination in effect" status. The manufacturer also submitted an invention patent for "potato kimchi filling fried dumplings," aiming to solve the problem that potatoes have not been applied in the dumpling field.
 
According to the administrative penalty decision disclosed on the official website of the Shanghai Municipal Market Supervision and Administration Bureau, on November 24, 2022, Sam's Supermarket listed the Japanese-style beef fried dumpling product and released an advertisement. The promotional text included "National patent emulsified spray process, using oil-water emulsification, quick-freeze forming, broth-filled filling, no need for oil-water frying, automatically forming hotel chef-level crispy ice flowers," etc., and was accompanied by a picture of the patent application acceptance notice from the China National Intellectual Property Administration.
 
After the incident, the patent mentioned in the advertisement was still under review, had not been approved, and the patent had not been obtained. Sam's Supermarket proactively made rectifications on March 7 this year, completely discontinuing all content related to "national patent" in the advertisement page, while the product continues to be sold. The above behavior violated the provisions of the "Advertising Law of the People's Republic of China" that "if a patent has not been obtained, it shall not be falsely claimed in advertisements," and the market supervision and administration department ordered the cessation of the advertisement and imposed a fine of 30,000 yuan on the advertiser.
 
 
[1] The People's Republic of China Advertising Law
Article 12
[1] If an advertisement involves a patented product or method, the patent number and type shall be indicated.
[2] If a patent has not been obtained, it shall not be falsely claimed in an advertisement.
[3] The use of patent applications that have not been granted patents, as well as patents that have been terminated, revoked, or invalidated, in advertisements is prohibited.
 
 
[1] The author's perspective
[4] This is not the first time Sam’s Club has been thrust into the spotlight. As the saying goes, "a tall tree catches the wind." As a large supermarket chain, not only is the quality of its food constantly scrutinized, but its product pricing and intellectual property also attract significant attention. This time, Sam’s Club violated the aforementioned provisions of the Advertising Law by falsely claiming patent rights for products that had not obtained patents. This shows that the status of "substantive examination in effect" does not mean a patent has been granted, so extra caution is needed in promotional efforts.

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