Research On The Application Of Punitive Damages For "Knowing And Buying Counterfeits"

China has introduced a punitive damages system in the consumer sector,with the intention of encouraging consumers to participate in the regulation of illegal business practices through private interest litigation.While sanctioning illegal operators and curbing illegal business activities,excess compensation also provides incentives for opportunistic behaviors such as "buying counterfeit claims".As for the controversy over whether the punitive damages rule can be applied to "knowing and buying fake goods",it is difficult to make effective institutional arrangements to give play to the positive function of "knowing and buying fake products" and limit its side effects,which needs to be discussed in depth in light of previous judicial practice.Since China’s current laws and regulations do not clarify whether punitive damages rules can be applied to "knowing and buying counterfeits",there are differences in the application of judicial practice,which are specifically manifested in the ambiguity of the criteria for determining the qualification requirements of the entity,the differentiated interpretation of fraudulent acts of business operators,the mechanized application of food safety standards,the generalization of the subjective fault determination of business operators,and the unclear status and scope of losses,which affect the uniformity of the application of the law.The reason is that,in addition to the ambiguity of the legal provisions and the lack of adjudication rules that lead to judges having greater discretion,there are also applicable conflicts between the preferential protection of consumers and the principle of good faith,between the principle of autonomy and the liability for defect guarantees,and between legal formalism and legal functionalism.In view of the above problems,starting from the institutional function and legislative purpose of punitive damages,this paper discusses the basis for the legitimacy of the application of punitive damages to "knowing and buying counterfeits",and puts forward suggestions for improving the specific application rules,including affirming the identity of consumers who "know and buy counterfeits".According to the pre-obligation and the stage of occurrence,the fraud of the operator is classified and blamed;Differentiate the application of food safety standards in different areas;Clarify the relationship between punitive damages and losses;Using the principle of proportionality and the principle of balance,the amount of punitive damages is flexibly determined,so as to effectively play the institutional function of punitive damages by guiding the private implementation of those who "know and buy fakes",and further improve the protection of consumer rights and interests.