On 10th April 2021, an apology statement from domestic beverage production company YuanQi Sen Lin (元气森林) drew widespread attention. In the statement, Yuan Qi Sen Lin, which has been selling itself as “zero sugar” and “healthy” since its launch, admitted that its products are not sugar-free. Although the beverage makerattributed the relevant facts to “failure in clarifying the difference between zero sucrose and zero sugar, which may easily lead to misunderstanding”, this statement and the apology were not accepted by the public. Discussions about the alleged false promotionof Yuan Qi Sen Linwere rampant, andpromotional compliancewas thus bought into the limelight.

Product liability1 is mainly stipulated in the Civil Code of the People's Republic of China (hereinafter referred to as the “Civil Code”) and the Product Quality Law of the People’s Republic of China (hereinafter referred to as the “Product Quality Law”). Specifically, the Civil Code and the Product Quality Law clearly stipulate that if a defective product causes harm to an individual, the manufacturer of the product shall bear tortious liability therefor. However, neither the Civil Code nor the Product Quality Law provides for a further definition of “manufacturer”.

A significant change in Incoterms 2020, in comparison with the 2010 version, is the increase in seller’s insurance obligations under the CIP rule. This article will give you a brief introduction of the background and implications of this change, as well as its impact on the buyer and the seller in international trading business.