SAMR Regulates the Discretion of Market Regulators to Impose Administrative Penalties: No penalty for minor violations

On October 8, 2022, the State Administration for Market Regulation (“SAMR”) issued “the Guidelines on Regulating the Discretion of Market Regulators to Impose Administrative Penalties”, which came into force immediately. Meantime, the SAMR No.244 (2019) document was abolished, and the original Guidelines were revised by the new legal document.

The Guidelines are applicable to the new Administrative Penalty Law and its amendment, and mainly modified the contents of the original Guidelines that are inconsistent with the new law, which guarantee the correct implementation of laws, regulations and rules. With a total of 20 articles, the Guidelines refined the requirements in relation to the discretion of the market supervision department to impose administrative punishments, mainly adjusting the rules for the exercise of discretion to waive penalties for minor violations and others. The Guidelines clarified that market regulators may decide not to impose administrative penalties on those who violate law for the first time with minor harmful consequences and can make correction in a timely manner. The Guidelines also added the circumstances that should be subject to heavier administrative penalties: the individuals or entities who act against the emergency response measures amid pandemic or similar emergencies shall be punished severely in accordance with the law.