Legal basis: Article 59 of People's Republic of China (PRC) Product Quality Law. Anyone who makes false propaganda about product quality in advertisements shall be investigated for legal responsibility in accordance with the Advertising Law.
Article 38 of the Advertising Law of People's Republic of China (PRC), in violation of the provisions of this law, publishes false advertisements, deceives and misleads consumers, and damages the legitimate rights and interests of consumers who buy goods or receive services. Advertisers shall bear civil liability according to law; Advertising agents and publishers who design, produce and publish advertisements knowing or should know that advertisements are false shall bear joint liability according to law.
Advertising agents and publishers who cannot provide the real name and address of advertisers shall bear all civil liabilities.
Social organizations or other organizations that recommend commodities or services to consumers in false advertisements, thus harming the legitimate rights and interests of consumers, shall bear joint liability according to law.
Law of the People's Republic of China on Protection of Consumer Rights and Interests
Article 49 Where a business operator commits fraudulent acts in providing commodities or services, it shall increase the compensation for the losses it has suffered according to the requirements of consumers, and the amount of the increase in compensation shall be twice the price of the commodities purchased by consumers or the cost of receiving services.
Article 55 Where an operator commits fraud in providing goods or services, it shall increase the compensation for the losses suffered by consumers as required, and the amount of compensation shall be three times the price of the goods purchased by consumers or the cost of receiving services; If the amount of additional compensation is less than that of 500 yuan, it shall be 500 yuan. Where there are other provisions in the law, those provisions shall prevail.
Where a business operator knowingly provides goods or services to consumers, causing death or serious damage to the health of consumers or other victims, the victims have the right to demand compensation from the business operator in accordance with the provisions of laws and regulations such as Articles 49 and 51 of this Law, and have the right to demand punitive damages less than twice.