SAMR Issues Provisions to Standardize Market Regulation Administrative Penalty Discretion

China News Service reported that the State Administration for Market Regulation introduced the Provisions on Administrative Penalty Discretion in Market Regulation as a ministerial rule to systematically standardize discretion. An official from the agency's Department of Regulations addressed questions regarding the new provisions. The provisions elevate discretionary rules to ministerial status to create stronger binding force and a unified national benchmark. Discretion is divided into five tiers: exemptions from punishment, mitigated punishment, lighter punishment, ordinary punishment, and heavier punishment, with distinct application conditions set for mitigated and lighter penalties. The measure establishes a three-level system of discretionary criteria across the national, provincial, and municipal tiers to unify enforcement yardsticks fairly. Strict procedures are instituted if adjustments are required; for instance, shifting a penalty from lighter punishment to mitigated punishment requires collective discussion and decision by departmental leaders. In moving forward with implementation, the Department of Regulations plans to organize publicity, interpretations, and trainings across the system. It also plans to guide local updates to discretionary criteria, build criteria databases, explore applying artificial intelligence and big data to assist decisions, and conduct periodic case reviews.