SAMR Issues Administrative Penalty Discretion Rules

The State Administration for Market Regulation has introduced provisions on market regulation administrative penalty discretion as departmental rules to systematically standardize discretionary powers, People's Daily reported. The regulation divides administrative penalty discretion into five tiers consisting of no penalty, mitigated penalty, lighter penalty, standard penalty, and heavier penalty, while specifying applicable circumstances for each level. Addressing exemptions for first-time violations, an official from the regulation department stated that non-punishment requires satisfying three statutory elements together: a first-time violation, minor harmful consequences, and timely rectification. All three elements are indispensable, meaning a first-time violation alone cannot serve as the sole ground for withholding penalties. The provisions define a first-time violation as committing an illegal act of that nature for the first time within two years, extending this timeframe to five years if the act involves citizens' life and health safety or financial safety with harmful consequences. Minor consequences consider factors such as lighter harm degree, smaller scope, and easily eliminated outcomes, while voluntary corrections made prior to discovery or formal orders count as timely rectification. The regulation refines various factors that enforcement personnel must consider during administrative discretion, providing clear guidelines to conduct comprehensive evaluations and prevent imposing penalties based on a single circumstance.