As the Mid-Autumn Day approaches, moon cakes again become trendy merchandise. However, the public concern of the so-called “luxury mooncakes” has prompted the authority to increase the level of market supervision on related products. A recent government announcement emphasized that manufactures should avoid using luxury materials in making and packaging mooncake products.
In a recent interview with media, JAVY’s managing director Ge Youshan has commented on the issue of luxury mooncakes:
With the government’s announcement, if the manufactures continue to use luxury package on mooncakes, even in disguise, they would violate the law.
The recent national standard released by State Administration for Market Regulation has clearly stated that the package of food should not exceed three layers, package for other products should not exceed four layers.
The regulation also limits the cost of package to less than 20% of the total price. Also, section 68 of the revised Law of the People's Republic of China on Prevention and Control of Environmental Pollution by Solid Waste stated that business operators should avoid over-packaging of their products.
The authority will strengthen its supervision on mooncakes with a price tag over RMB 500. As a result, lots of vendors set the price of their mooncake products to RMB 498-499, but charge the consumers extra money on freight as high as RMB 600, to evade the supervision, however, this also violates the law, said Mr. Ge.
First, the aforementioned activities may be characterized as price violation, this may lead to monetary penalty as high as RMB 500,000 to 3 million, plus possible business suspension for rectification, or even revocation of business license.
Second, a lower price tag may give the vendor an unfair advantage as consumers tend to prefer products with lower price, without noticing the added freight. As a result, this can be characterized as an unfair competition activity that not only cheats the consumer, but also harms other honest vendors.
We sincerely hope the mooncakes can return to their original roots and bring the consumers a peaceful and harmonious festival, and would not become a tool for dishonest business behaviors.
© Beijing JAVY Law Firm Beijing ICP Registration No. 18018264-1