China Issues Draft Rules On Consumer Protection

In April 2013, the People's Republic of China's General Office of the National People's Congress published a draft amendment to the Law on the Protection of Consumer Rights and Interests (the "Proposed Amendment") and solicited public comments on the Proposed Amendment until 31 May 2013. The Proposed Amendment greatly changes current consumer protection law. The main changes are as follows:

1. Consumer information protection

The Proposed Amendment adds provisions regarding consumer information protection. Consumers are entitled to the protection of their personal information, such as their name, image and privacy when purchasing goods or receiving services. Furthermore, when collecting and using a consumer's personal information, companies must inform the consumer of the purpose, method and scope of such collection and use, and obtain the prior consent of the consumer. Companies must also keep a consumer's personal information confidential, and cannot disclose,