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China's SAMR to issue new rules on proportional administrative penalties
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On September 24, China's State Administration for Market Regulation (SAMR) announced at its third-quarter regular press conference that it will soon issue the 'Market Supervision and Administrative Penalty Discretion Regulations' to ensure that administrative penalties are proportionate to the offense. The new regulation has three main features: First, it upgrades the discretion rules from a normative document to a departmental regulation, providing stronger institutional rigidity and greater binding force, establishing a unified standard for law enforcement nationwide. Second, it refines the penalty gradations into five tiers: no penalty, mitigated penalty, light penalty, standard penalty, and heavy penalty, with clear application criteria for each tier. Notably, it distinguishes between mitigated and light penalties, which were often confused in practice, addressing law enforcement officers' reluctance and confusion in applying them. Third, it unifies the criteria for common discretionary factors such as 'first-time offense,' 'minor illegal act,' and 'minor harmful consequences' based on local practices, providing clear guidance for grassroots enforcement and certainty for business entities.
Source report
Beijing, September 24 — The State Administration for Market Regulation (SAMR) announced today at its third-quarter regular press conference that it will soon issue the Regulations on Discretion in Administrative Penalties for Market Regulation, aiming to ensure that penalties are proportionate to the violations.
The new regulation features three key characteristics:
1. Elevated Legal Authority
The regulation upgrades the discretionary rules from a normative document to a departmental regulation, providing stronger institutional rigidity and greater binding force. This establishes a unified standard for law enforcement nationwide.
2. Refined Gradation of Penalties
Penalty discretion is divided into five tiers: no penalty, mitigated penalty, light penalty, standard penalty, and severe penalty. Each tier clearly defines the applicable circumstances. In particular, the regulation distinguishes between "mitigated" and "light" penalties—two categories often confused in practice—thereby addressing enforcement officers' concerns about "daring to use" and "knowing how to use" discretionary powers.
3. Unified Standards
Based on practices across various regions, the regulation standardizes the criteria for commonly used discretionary factors such as "first-time violation," "minor violation," and "minor harmful consequences." This provides clear guidance for grassroots enforcement and offers business entities greater predictability.
Source
财联社Eastern
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China's Market Regulator to Issue New Rules Ensuring Proportional Administrative Penalties