---
title: "Laocunzhang Liquor Distributors Suspected of Commercial Bribery Investigated by Puyang Industry and Commerce Authorities"
description: "On June 1, a reporter learned from the Puyang Municipal Administration for Industry and Commerce in Henan Province that, in order to maintain normal market competition order and protect the legitimate rights and interests of enterprises and consumers, the Puyang industry and commerce authorities, in accordance with the unified arrangement of the Provincial Administration for Industry and Commerce, launched a crackdown from that day until June 25 across the city on distributors of Laocunzhang liquor suspected of commercial bribery, signing exclusive agreements, and other unfair competition practices. It was reported that recently, the Henan Provincial Administration for Industry and Commerce received a complaint from Heilongjiang Longxiang Jiayuan Liquor Co., Ltd., stating that distributors of Laocunzhang liquor in many places in Henan Province, under the instruction of their superiors, used commercial bribery, formatted exclusive contracts, and purchasing competing brand products to restrict terminal retailers from selling Longxiang Jiayuan liquor, causing serious adverse effects and significant economic losses to the company and its distributors."
author: "雕爷"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2016-06-03"
language: "en"
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# Laocunzhang Liquor Distributors Suspected of Commercial Bribery Investigated by Puyang Industry and Commerce Authorities

> On June 1, a reporter learned from the Puyang Municipal Administration for Industry and Commerce in Henan Province that, in order to maintain normal market competition order and protect the legitimate rights and interests of enterprises and consumers, the Puyang industry and commerce authorities, in accordance with the unified arrangement of the Provincial Administration for Industry and Commerce, launched a crackdown from that day until June 25 across the city on distributors of Laocunzhang liquor suspected of commercial bribery, signing exclusive agreements, and other unfair competition practices. It was reported that recently, the Henan Provincial Administration for Industry and Commerce received a complaint from Heilongjiang Longxiang Jiayuan Liquor Co., Ltd., stating that distributors of Laocunzhang liquor in many places in Henan Province, under the instruction of their superiors, used commercial bribery, formatted exclusive contracts, and purchasing competing brand products to restrict terminal retailers from selling Longxiang Jiayuan liquor, causing serious adverse effects and significant economic losses to the company and its distributors.

On June 1, a reporter learned from the Puyang Municipal Administration for Industry and Commerce in Henan Province that, in order to maintain normal market competition order and protect the legitimate rights and interests of enterprises and consumers, the Puyang industry and commerce authorities, in accordance with the unified arrangement of the Provincial Administration for Industry and Commerce, launched a crackdown from that day until June 25 across the city on distributors of Laocunzhang liquor suspected of commercial bribery, signing exclusive agreements, and other unfair competition practices.

It was reported that recently, the Henan Provincial Administration for Industry and Commerce received a complaint from Heilongjiang Longxiang Jiayuan Liquor Co., Ltd., stating that distributors of Laocunzhang liquor in many places in Henan Province, under the instruction of their superiors, used commercial bribery, formatted exclusive contracts, and purchasing competing brand products to restrict terminal retailers from selling Longxiang Jiayuan liquor, causing serious adverse effects and significant economic losses to the company and its distributors at all levels.

The complainant stated that in the agreements signed between Laocunzhang liquor distributors and terminal retailers, there were explicit exclusive clauses such as "not allowed to sell Longxiang Jiayuan liquor" or "not allowed to display Longxiang Jiayuan liquor," which are suspected of unfair competition; and there were explicit provisions for material benefits such as "mountain bikes, automatic washing machines, electric vehicles" based on the length of time not selling Longxiang Jiayuan liquor, which are suspected of commercial bribery.

A staff member of the Puyang Municipal Administration for Industry and Commerce told reporters that commercial bribery refers to the unfair competition behavior in which an operator, for the purpose of excluding competitors and in order to obtain trading opportunities, secretly gives property or other benefits to relevant personnel of the other party and other relevant personnel who can influence the transaction. It is a form of bribery, but different from other forms of bribery.

Regarding commercial bribery, Article 8 of the Anti-Unfair Competition Law stipulates that operators shall not use property or other means to bribe in order to sell or purchase goods. "If an operator violates the provisions and uses bribery to sell or purchase goods, the administrative authority for industry and commerce shall, in accordance with the provisions of Article 22 of the Anti-Unfair Competition Law, impose a fine of not less than 10,000 yuan but not more than 200,000 yuan depending on the circumstances; if there is illegal income, it shall be confiscated; if a crime is constituted, criminal responsibility shall be investigated according to law," the staff member said.

Teacher Fang Gang's comments:
1. The agreement was signed too directly; exclusive statements or exclusive brands should be replaced with code words or symbols.
2. When signing the agreement, make two copies, but never leave them in the terminal or in the distributor's office or branch office; electronic documents should use code words or symbols to replace sensitive statements such as exclusivity.
3. The agreement is just a piece of paper; the key is the solidity of terminal visits, the properness of shelf management, the inspection of clearing premium products, and the implementation of assessment.
4. Exclusive or exclusive agreements are most likely to cultivate lazy people, thinking that once the agreement is signed, everything is fine and they can close the door and sleep. That is not the case!
5. Signing exclusive agreements is to kill the opponent's high-quality terminals point by point, not a three-dimensional blockade. The area should not be too large; the higher the proportion, the worse the effect.
6. This kind of named large-scale exclusivity either occurs when being attacked and feeling helpless, or in the context of a large-scale attack on the opponent.

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