GUANGZHOU: Five lawyers in Guangzhou have submitted a proposal to the National People's Congress (NPC) to amend the Law on the Protection of Consumers' Rights and Interests.

"We have suggested introducing the measure of punitive damages into the law of China. We hope worse punishments for counterfeit makers can stop fake products damaging people's health," said Chen Beiyuan, a senior lawyer with the Guangdong Bohao Law Firm and one of the five who initiated the proposal. It was delivered to the NPC on Wednesday.

Punitive damages are damages exceeding simple compensation awarded to punish the defendant. They are aimed at discouraging conduct of the type the defendant engaged in, and have been widely used in the United States and some other developed countries.

"Fake drug cases are one of several inspirations for our proposal," Chen said.

In the past few years, many people, including some infants, have died after taking fake alcohol, poor quality milk powder and fake medicines.

Chen said the 49th item of the current Law on the Protection of Consumers' Rights and Interests states compensation for a victim of a counterfeit product should be double that of the financial, physical, mental and other losses. If a person dies because of the fake product, the maximum compensation is a few thousand US dollars.

"But the amount is too small to cover a victim's losses and deter the manufacturers from continuing to produce fake products," Chen said.

Chen proposed compensation should be four times the loss incurred where the defendant intentionally produces or sells counterfeits, but double if the defendant broke the rules accidentally.

Lots of lawyers have said punitive damages should be introduced to China, but no one has tried to propose such a thing to the NPC.

Chen said he did not know when the body would make a decision.

"It may take several years or longer. The victims of recent fake drug cases in Guangzhou may not benefit, but thousands of people across China could benefit in the future," he said.

"I support the proposal, although it will not help us," said Wu Mingfa, the elder brother of a man who died after taking fake drugs made by Qiqihar No 2 Pharmaceutical Company.

The firm's counterfeit drugs are said to have caused at least nine deaths in Guangzhou.

Since compensation does not have an upper limit in many states in America, some victims are awarded compensation many times higher than their actual loss.

"But we suggest four times the real loss should be the upper limit, so that the cases will be easier to handle," Chen said.

He and his colleagues have been offering free legal advice to dozens of victims and their relatives.

Source: China Daily