China's State Administration for Market Regulation (SAMR) held a regular quarterly press conference on December 16 to explain its "first-time offense no penalty" and "minor violation exemption" policies.
Earlier this year in January, SAMR issued two lists of penalty exemptions: the "First-Time Administrative Violations No Penalty List (1)" and the "Minor Administrative Violations No Penalty List (1)". These documents specify 8 types of first-time violations and 4 types of minor violations that qualify for exemption from penalties, aiming to create a more lenient business environment for market entities.
SAMR recently published a batch of typical cases demonstrating the application of these policies. Wang Qiuping, Director of SAMR's News and Publicity Department, explained that "first-time offense" refers to violations committed by market entities without any record of similar offenses within two years. For "minor violations", the violations must simultaneously meet strict criteria including "minor consequences" and "timely correction".
Wang described these policies as both "a warning ruler marking red lines" and "road signs clarifying boundaries". Through list-based management, they provide market entities with room for error correction while offering clear guidance for law enforcement, with the goal of achieving unified standards.
However, Wang emphasized that "no penalty" doesn't mean "no supervision". Market regulators will firmly prevent lenient enforcement from turning into indulgence or protection. Zero tolerance will be maintained for behaviors that cross red lines in areas like food safety and public security. Malicious violations will not be tolerated, and repeat offenses will not be overlooked.
Wang clarified that penalty exemption doesn't equate to responsibility exemption. Rectification must be implemented and accountability must be fulfilled. Market regulators will strengthen supervision of relevant market entities through a combination of education and regulation.
To ensure standardized implementation and prevent policy distortion, SAMR will intensify publicity of the lists' contents and guide local market regulators to improve enforcement capabilities. The administration will regularly publish typical cases to establish a clear principle that "law-abiders benefit while violators bear responsibility". SAMR will also improve supervision mechanisms to ensure every case can withstand legal and social scrutiny.
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