China's top court releases judicial interpretation on punitive damages for food, drug cases

BEIJING, Aug. 21 (Xinhua) -- China's Supreme People's Court (SPC) issued a new judicial interpretation on punitive damages for food and drug cases on Wednesday to guide producers in engaging in lawful production and encourage consumers to exercise their rights in a rational manner.

Chen Yifang, a chief judge of the SPC's first civil adjudication tribunal, highlighted the court's focus on balancing the protection of consumers' rights and interests with the promotion of economic and social development at a press conference.

"The judicial interpretation strengthens the protection of consumer rights and interests while implementing the principle of proportionate penalties," Chen said. "It regulates excessive compensation claims to ensure the normal operation of production and business activities."

The document, which consists of 19 articles, supports punitive damages claims for all purchasers within the scope of their daily consumer needs, thereby fully protecting the rights of ordinary consumers to seek compensation.

The interpretation also addresses malicious excessive compensation claims and repeated claims. Those who knowingly purchase counterfeit goods and maliciously seek excessive compensation will have their claims supported within a reasonable scope, in accordance with the law.

The judicial interpretation also takes into consideration public opinions solicited during the drafting process. It stipulates that when necessary, food and drugs should be disposed of or destroyed in accordance with relevant provisions of the Food Safety Law and the Pharmaceutical Administration Law. This is to eliminate public concerns about unqualified food and drugs re-entering the market.

To crack down on illegal compensation claims, the document imposes penalties ranging from fines to detention for perpetrators engaged in illegal activities such as blackmailing for compensation or fabricating false lawsuits. The severity of the offense determines the level of punishment.

The judicial interpretation will come into effect on Thursday.

Moving forward, the SPC aims to enhance coordination between civil litigation and administrative law enforcement. It also plans to provide legal support for procuratorial organs in filing public interest litigation to curb illegal acts by market entities, according to Chen.