The Consumer Protection Law has been in place for over 20 years since its introduction in 1993. As the economy has grown rapidly, people's living standards have improved significantly, and their consumption habits and mindsets have also evolved. In response to these changing trends, new challenges and situations have emerged that the original "Cancellation Law" could no longer address. This led to the introduction of the new "Cancellation Law," which brings updated regulations on key consumer rights issues such as online shopping, public interest litigation, and punitive damages.
Now, what does this new law mean for the home industry, and how should businesses adapt?
**1. Key New Regulations Affecting the Home Furnishing Industry**
1. **Reversal of the Burden of Proof**: Consumers can now file complaints within six months for decoration services, and the seller must prove the product’s quality.
Under China’s Civil Procedure Law, the principle is “who claims, who provides evidence.†However, the new Consumer Law now shifts the burden of proof to the seller for certain large-scale goods and services, including home decoration. If a defect arises within six months, the seller must prove it was not present at the time of sale.
2. **7-Day No-Reason Return Policy for Online Shopping**: Except for specific categories.
Article 25 of the new law allows consumers to return items purchased online, via TV, phone, or mail order within seven days without giving a reason. Exceptions include custom-made goods, perishable items, digital products, and newspapers. This gives consumers more flexibility but requires them to keep the item unused and in original condition.
3. **Public Interest Litigation by Consumer Associations**:
The Chinese Consumer Association and local associations can now file lawsuits against operators who violate the rights of many consumers. This applies to issues like unfair contract terms, false advertising, and other practices that harm a large number of people. It helps protect weaker consumers who may struggle to seek justice individually.
4. **Increased Compensation for Fraudulent Practices**:
Operators found guilty of fraud must compensate consumers three times the purchase price, with a minimum of 500 yuan. This serves as a strong deterrent against deceptive business practices.
5. **Mental Damages for Personal Rights Violations**:
If an operator violates a consumer’s dignity, freedom, or personal information, they are required to apologize, restore reputation, and compensate for any mental harm caused.
6. **Protection of Consumer Personal Information**:
The law imposes civil and administrative penalties on businesses that misuse or disclose personal data. This marks the first time personal information protection is explicitly recognized as a consumer right.
**2. E-commerce Adaptation and Extended Return Policies**
Since the new law came into effect, major e-commerce platforms like Baidu and Gome Online have adjusted their policies. For example, Taobao now displays a “7+†return policy for certain products, allowing up to 15 days for returns. This gives consumers more confidence in online shopping while requiring sellers to be more transparent and flexible.
**3. Challenges and Adjustments in the Home Industry**
In the broader home industry, competition among consumers, dealers, and manufacturers has intensified. While the 7-day return policy has minimal impact on most businesses, it pushes companies to improve quality control and service. Unqualified producers must now focus on better production processes and self-inspection to meet higher standards.
Ultimately, the new law reflects the evolving expectations of consumers. Businesses must respect consumer rights, enhance service quality, and adapt strategically to stay competitive. For those aiming to grow, this is an opportunity to refine operations, strengthen customer relationships, and build long-term trust.
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