China's New Interpretation of the Anti-Unfair Competition Law

May 13, 2022 | BY

Susan Mok

Kai Huang of Commerce & Finance Law Offices highlights key definitions that have been specified under the Interpretation in relation to the AUCL that offer greater clarity and practical guidance for the protection of businesses and consumers against anti-unfair competitive conduct

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Summary 

  • Article 2 of the Interpretation lowers the threshold for rights protection because it serves as an explicit legal basis for business operators but it can also increase the possibility of infringement.
  • Article 3 of the Interpretation defines "business ethics" as a code of conduct commonly accepted and recognized in a specific business field and provides some factors to be taken into consideration when determining whether there is a violation of business ethics.
  • Articles 4-15 of the Interpretation provide further explanations and guidance on "acts of confusion", including the meaning of "special connection with another party", the application of various types of "acts of confusion", and the legal liability of persons involved in "acts of confusion".
  • Articles 21 and 22 of the Interpretation clarify two online unfair competition acts: "forcing a URL redirection" and "interfering with users" while still leaving room for flexibility.