On March 14^th, 2025, ahead of World Consumer Rights Day, the Shanghai Third Intermediate People's Court (the Shanghai Intellectual Property Court (SIPC) and Shanghai Railway Transportation Intermediate Court) (hereinafter referred to as the Court (the SIPC, Shanghai Railway Transportation Intermediate Court)) held a press conference. Zhong Ming, a member of the Party Leadership Group and Vice President of the Court, provided a special briefing on the trial outcomes of civil public interest litigation cases involving consumer rights protection. Yue Qimu, Chief Judge of the Civil Division, reported five typical cases. Wu Yingzhe, Chief Judge of the Appeals Review and Judicial Supervision Tribunal (Research Office, Adjudication Management Office) and spokesperson presided over the press conference.

This press conference marks the fourth event in the ¡°Promoting Justice, Making an Example¡ªFurther Advancing the Modernization of Shanghai Courts' Work¡± series of press conferences.

According to Zhong Ming, since May 2017, the Court (the SIPC, Shanghai Railway Transportation Intermediate Court) has centralized jurisdiction over civil public interest litigation cases involving consumer rights protection. These cases exhibit the following main characteristics:

First, overall stability in case numbers, with a significant increase in recent years. After assuming centralized jurisdiction, the Court (the SIPC, Shanghai Railway Transportation Intermediate Court) experienced a steady start with overall stability in the number of cases. However, in the past two years, there has been a noticeable rise. In 2023 alone, the Court accepted 1.25 times the total number of cases handled in the previous six years, with a further 20% increase in 2024. This growth is closely linked to the public's heightened awareness of food and drug safety and personal health, as well as a deeper understanding among relevant stakeholders of the objectives and significance of consumer public interest litigation following the establishment of the public interest litigation system. Among these cases, approximately two-thirds were initiated by procuratorial organs, while around one-third were filed by consumer rights protection organizations.

Second, broad scope of disputes, with emerging new types of cases. According to the reported data, cases involving consumer goods account for 40% of the total, covering items such as infant feeding accessories, household formaldehyde detectors, and electric heaters. Food-related cases involve counterfeit Ejiao products, Sushi decorated with gold or silver foil, beef containing clenbuterol, and aquatic products containing tetrodotoxin. Drug-related cases include unregistered counterfeit drugs for cardiovascular and cerebrovascular diseases and weight-loss drugs containing banned substances like sibutramine. Additionally, there are four cases involving information and data, compromising the facial recognition data and videos of hundreds of consumers, totaling over 30,000 pieces.

Third, the high winning rate and settlement rate reflect the effective performance of consumer protection entities. Regarding case closure methods, approximately 70% of cases were concluded either through court-facilitated mediation agreements or self-negotiated settlements, with nearly half of these agreements fully executed during the trial process. In adjudicated cases, due to the sufficient evidence and diligent efforts of consumer protection entities, about two-thirds of plaintiffs' claims were entirely upheld by the court.

Fourth, multiple liability mechanisms are employed simultaneously to comprehensively protect consumer rights. These mechanisms encompass obligations such as cessation of infringement, removal of obstacles, elimination of hazards, public apologies, and compensation for losses. Additionally, responsibilities include establishing and improving internal risk control systems, enhancing management of products sold on platforms, and publishing quality risk monitoring information for imported goods. In over 65% of the cases, the infringing parties bore three or more of the aforementioned liabilities.

Zhong Ming explained that, to comprehensively safeguard public interests and actively promote consumer public interest litigation, the Court (the SIPC, Shanghai Railway Transportation Intermediate Court) has developed a series of innovative mechanisms and practices.

In promoting ethical business practices, if producers or sellers fabricate or exaggerate the efficacy of goods or services, constituting fraud, and consumers seek compensation, the Court supports such claims in accordance with the law. The Court also opposes the deliberate dissemination of misleading information, such as falsely claiming ¡°online industry norms,¡± to attract consumer attention. Such actions guide businesses toward honest operations and uphold a fair and competitive market order.

In safeguarding personal information, if operators use new technologies such as facial recognition to excessively collect or process personal data without consumer consent, and consumers seek accountability, the Court will uphold such claims in accordance with the law.

Regarding punitive damages, the Court (the SIPC, Shanghai Railway Transportation Intermediate Court), in accordance with the Supreme People's Court Provisions on the Law Application in the Trial of Food and Drug Dispute Cases, and with reference to the Food Safety Law of the People's Republic of China and the minutes of the joint meeting of seven ministries and commissions, has, in 2 judgments and 7 judicial confirmation cases, ordered infringing parties to pay punitive damages amounting to several times the sales amount or product value. These funds are deposited into accounts of procuratorial organs, the Shanghai Consumer Foundation, or the Shanghai Children's Foundation, to be lawfully used for the protection of public interests.

In terms of improving the trial efficiency, the Court (the SIPC, Shanghai Railway Transportation Intermediate Court) has optimized the judicial resource allocation by categorizing consumer disputes according to their complexity. For cases involving small dispute amounts and a determinate relationship of rights and obligations, the Court prioritizes expedited handling and resolution to ensure timely and facilitate efficient redress for violations against consumer rights. Simultaneously, the Court leverages information technology to promote digital trials for consumption disputes, utilizing electronic delivery, online court hearings, and other methods to streamline litigation procedures. This reduces the costs associated with consumer civil public interest litigation while enhancing overall trial efficiency.

During the conference, the Court (the SIPC, Shanghai Railway Transportation Intermediate Court) reported and interpreted five typical civil public interest litigation cases related to consumer rights protection. These cases include: a case involving smuggled but unsold clenbuterol-tainted ¡°toxic beef¡± posing a threat to consumers; a case of manufacturing and selling counterfeit branded infant formula leading to punitive damages; a case of selling counterfeit branded baby bottles and nipples with compensation paid to a children's foundation; a joint liability case of overseas purchaser and cross-border e-commerce platform for selling prohibited japanese sake; and a case of unauthorized facial recognition data collection at a real estate sales office resulting in tort liability.

¡°The Court (SIPC, Shanghai Railway Transportation Intermediate Court) will adjudicate civil public interest litigation cases involving consumer rights protection fairly and in strict accordance with the law,¡± stated Zhong Ming. ¡°By fully leveraging the role of public interest litigation, we aim to safeguard consumers' legitimate rights and interests, deter unlawful production and business activities, and maintain an honest and efficient market order. These efforts are intended to comprehensively promote consumption, accelerate the enhancement of consumption quality, support the implementation of the domestic demand expansion strategy, and contribute to Shanghai's development as an international consumption center.¡±

White Paper on the Adjudication of Civil Public Interest Litigation Cases Involving Consumer Rights Protection by the Shanghai Third Intermediate People's Court (the SIPC, Shanghai Railway Transportation Intermediate Court)

Typical Cases of Civil Public Interest Litigation Involving Consumer Rights Protection Adjudicated by the Shanghai Third Intermediate People's Court (the SIPC, Shanghai Railway Transportation Intermediate Court)