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China’s Amendment to the Anti-Unfair Competition Law 2025: Key Provisions and Practical Insights

2025.09.11

Introduction 
 
On June 27, 2025, China adopted a revision of the Anti-Unfair Competition Law (“AUCL”).  This represents the third major overhaul since the law’s enactment in 1993 (previous revisions were made in 2017 and 2019).  Together with the Anti-Monopoly Law, the AUCL regulates a wide spectrum of unfair business practices, including deceptive marketing, bribery, misappropriation of trade secrets, and online misconduct. 
 
The revised AUCL is scheduled to take effect on October 15, 2025.  Companies operating in or entering the Chinese market should pay close attention to its new provisions and practical implications. 
 
 
The 2025 AUCL Amendments 
 
1. Misuse of Commercial Identifiers (Article 7. Expanded Scope under the 2025 Revision) 
 
The revised law expands protections against the misleading use of commercial identifiers to reflect digital-era branding practices.  Previously, the AUCL prohibited the unauthorized use of another business’s well-known trade names, trademarks, packaging, décor, domain names, website names, and similar identifiers that could mislead consumers as to the origin of goods or services.  The amendment now explicitly extends coverage to digital identifiers, including social media account names (e.g., WeChat or Weibo handles), app names, and even app icons.  For companies, this means not only broader protection against imitators but also heightened exposure to regulatory action if digital branding strategies are not carefully managed. 
 
Practical Insights: 
  
<ul>
	<li>Monitor the market for copycat accounts, apps, or icons that may infringe on brand identity</li>
	<li>Conduct trademark, account name, and app name searches before entry to avoid inadvertent infringement</li>
	<li>Secure account names and icons early by registering them as trademarks or copyrights to prevent imitators</li>
</ul>

2. Commercial Bribery (Article 8) 
 
The AUCL continues to prohibit commercial bribery, defined as offering money or other improper benefits to secure an undue competitive advantage or transaction opportunity.  Article 8 specifically identifies three categories of recipients: (i) employees of a counterparty, (ii) entities or individuals entrusted by a counterparty to handle relevant business (such as agents or consultants), and (iii) entities or individuals who, by virtue of authority or influence, can affect the outcome of a transaction. 
 
Importantly, the law not only prohibits the act of giving bribes but also explicitly criminalizes the acceptance of such bribes by recipients.  Legitimate payments—such as ordinary trade discounts or agency commissions made in good faith—are permissible if accurately recorded in the accounts of both payer and payee.  If an employee provides a bribe on behalf of the company, the company is presumed liable unless it can demonstrate that the conduct was unrelated to obtaining business or competitive advantage for the company. 
 
Practical Insights:

<ul>
	<li>Distinguish legitimate promotional payments from improper inducements</li>
	<li>Recognize that bribery encompasses cash, expensive gifts, lavish hospitality, or any economic benefit intended to influence a transaction</li>
	<li>Implement internal thresholds, approval processes, and transparent records for all payments.</li>
</ul>

3. False or Misleading Advertising (Article 9) 
 
The revised AUCL reinforces prohibitions on false or misleading commercial promotion.  Businesses must not mislead consumers—or other businesses—by misrepresenting product performance, functionality, quality, sales figures, user reviews, awards, or other attributes.  Even subjective claims can be problematic if they imply objective fact.  For example, phrases such as “Number 1 in the industry” or “Best on the market” may be unlawful if not supported by verifiable data or certification. 
 
Practical Insights:

<ul>
	<li>Implement review and approval processes for all advertisements, including those created by partners or influencers.</li>
</ul>

4. Trade Secret Misappropriation (Article 10) 
 
Trade secrets are defined as non-public technical or business information that has economic value and is subject to reasonable confidentiality measures.  The AUCL prohibits acquiring such trade secrets through theft, fraud, coercion, bribery, or hacking, as well as using or disclosing trade secrets known to have been obtained by improper means.  Encouraging or assisting others in misappropriation is likewise prohibited. 
 
Practical Insights:

<ul>
	<li>Strengthen protective measures: NDAs, employee training, cybersecurity, and access control systems.</li>
	<li>Seek remedies under both the AUCL and contract law if misappropriation occurs.</li>
	<li>Avoid liability by ensuring due diligence in hiring and collaboration to prevent the misuse of third-party confidential information.</li>
</ul>
 
 
5. Unfair Prize Promotions (Article 11) 
 
Prize-linked sales promotions are subject to strict regulation under the revised AUCL, with the aim of preventing consumer deception and abuse of marketing incentives.  Prohibited practices include: 
 
<ul>
	<li>failing to disclose prize details transparently,</li>
	<li>changing terms arbitrarily once a promotion has begun,</li>
	<li>rigged or deceptive outcomes, and</li>
	<li>offering a lottery-style prize exceeding RMB 50,000.</li>
</ul>
 
Practical Insights: 
 
<ul>
	<li>Clearly disclose all terms at the outset and avoid mid-event changes.</li>
	<li>Verify compliance with tax and gambling-related laws when offering high-value prizes.</li>
	<li>Record and preserve prize draw processes to ensure fairness and transparency.</li>
</ul>
 
 
6. Regulation of Online Misconduct (Article 13. Newly introduced) 
 
Article 13 consolidates several new provisions targeting unfair practices in the digital environment.  It prohibits companies from using data, algorithms, technology, or platform rules to manipulate user choice or disrupt competitors’ normal operations. 
 
A. Online Unfair Competition 
 
This newly added provision specifically addresses unfair competition in the digital environment.  It prohibits companies from using data, algorithms, technology, or platform rules to manipulate user choice or disrupt competitors’ normal operations.  Examples include unauthorized link insertion, forced redirects, misleading prompts to uninstall competitor apps, deliberate incompatibility, and other disruptive acts. 
 
Practical Insights: 
 
<ul>
	<li>Ensure IT and marketing teams do not engage in practices that hijack user traffic or undermine competitor services.</li>
	<li>Conduct compliance checks for system updates and interoperability decisions.</li>
</ul>
 
B. Illicit Data Acquisition and Use 
 
This provision recognizes data as a legally protectable asset.  It prohibits acquiring or using data held by another business through improper means such as fraud, coercion, or circumventing technical protections. 
 
Practical Insights: 
 
<ul>
	<li>Unauthorized web scraping, API circumvention, and bypassing security measures are all prohibited.</li>
	<li>Data exposed online is not necessarily free to use—contractual and legal authorization is required.</li>
	<li>Adopt internal compliance guidelines for data collection and usage, with prior legal review and staff training.</li>
</ul>
 
C. Abuse of Platform Rules  
 
This new provision bans the manipulation of platform rules to harm competitors.  Prohibited conduct includes fake orders, fabricated reviews, and malicious bulk returns.  The law applies both to direct misconduct and acts carried out through third parties. 
 
Practical Insights: 
 
<ul>
	<li>Insert explicit prohibitions on fake transactions and review manipulation in contracts with agencies and partners.</li>
	<li>Monitor abnormal return or review patterns and preserve evidence.</li>
	<li>Report suspicious conduct promptly to platforms or regulators.</li>
</ul>
 
 
7. Prohibition on Forced Below-Cost Sales (Article 14) 
 
Article 14 is newly introduced to prohibit platform operators from coercing merchants to sell below cost, either directly or indirectly by leveraging rankings, advertising, or promotional opportunities.  This provision aims to curb e-commerce practices where major platforms pressured vendors into unsustainable discounting. 
 
Practical Insights: 
 
<ul>
	<li>Ensure all pricing arrangements with merchants are voluntary and commercially reasonable.</li>
</ul>
 
 
8. Abuse of Dominant Position (Article 15) 
 
This new article prohibits large enterprises from abusing superior bargaining power to impose manifestly unfair trading conditions on smaller businesses.  Examples include excessive payment delays, unilateral contractual terms, and disproportionate liabilities.  The precise scope of “manifestly unfair conditions” will likely be clarified by enforcement practice and case law. 
 
Practical Insights: 
 
<ul>
	<li>Companies with significant market power should review their standard contracts with SMEs to ensure fairness.</li>
	<li>Anticipate future case law to shape the interpretation of this provision.</li>
</ul>
 
 
9. Penalties and Legal Liability 
 
The amended AUCL strengthens sanctions for violations, particularly those involving digital-era misconduct. 
 
<ul>
	<li>Administrative Penalties 
	Regulators may order cessation, confiscate illegal gains, and impose fines up to RMB 5 million.  In severe cases—such as misappropriation of identifiers, bribery, or false advertising—business licenses may be revoked.</li>
	<li>Two-Step Enforcement 
	For systemic practices such as abuse of dominance, authorities may first issue rectification orders.  Fines are imposed only if companies fail to comply.</li>
	<li>Civil Remedies 
	Victims may pursue damages.  For intentional and serious violations, courts may award punitive damages of one to five times actual losses, or up to RMB 5 million where losses are difficult to calculate.</li>
</ul>
  
  
Conclusion 
 
The 2025 AUCL amendments mark a decisive extension of China’s competition law into the digital domain.  By treating data, algorithms, and platform rules as sources of potential unfairness, the law elevates digital conduct to a central measure of compliance.  Market actors will need to assume that regulatory scrutiny now attaches as much to methods of competition as to outcomes, with enforcement practice defining the boundaries ahead.     
 
  
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