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In the world of private collections, the concept of "anti-fraud and no counterfeiting" has long been a guiding principle. However, the question arises: why does the court impose double compensation in such cases? And does the private collectibles market fall under consumer protection laws, especially on occasions like March 15th? According to an official from the China Consumers Association, if someone purchases a fake artifact, can they claim "double compensation" under the Consumer Protection Law? During the first domestic seminar on private collections and consumer rights, Wang Zouhu, director of the Complaints and Legal Affairs Department at the China Consumers Association, stated that it is not appropriate to universally apply the elimination method in the private collection market. This view was supported by legal experts, lawyers, and collectors present at the event, which was organized jointly by a newspaper and *China Collection* magazine.
In recent years, the private collection market has seen significant growth, with various forms of collecting becoming increasingly popular. However, this surge has also led to a rise in disputes, particularly those involving counterfeit items. Due to the unique nature of private collection transactions, some local authorities and courts have differing interpretations on whether the Consumer Protection Law should be applied. This inconsistency has, to some extent, hindered the smooth development of the private collection industry.
Wang Zouhu emphasized that with the growing popularity and social attention given to private collections, it is crucial to hold discussions on how consumer rights are protected in this sector. The rapid expansion of the private collection market has brought about new challenges, and the seminar provided a timely opportunity to explore how to define the market as a whole and address specific disputes. A clearer understanding of which laws apply and under what circumstances will help consumers make more informed decisions and better protect their rights when purchasing collectibles.
Can consumer law apply to all private collection transactions? Wang Zouhu believes that in common trade fairs where private collections are prevalent, if the seller did not intentionally deceive the buyer, then the "double compensation" rule may not be applicable. When fake items are sold in a collectibles transaction, determining whether it falls under the scope of consumer law requires case-by-case evaluation. For example, if a melamine item labeled as "Ming Dynasty" is sold at a price typical for crafts, it would likely not be subject to consumer law.
Professor Zhao Qun from the China University of Political Science and Law argued that consumer law applies only when three conditions are met: the party involved must be a business operator, the behavior must be illegal, and there must be subjective fault. If any of these elements is missing, consumer law should not be applied. Transactions between individuals in markets or private settings, he added, should be governed by general civil law rather than the consumer protection framework.
Zhao Zhongfu, a professor at Renmin University of China’s School of Law, suggested that the elimination method applies primarily to transactions conducted by business operators—such as antique shops or craft stores—where the buyer is a consumer. If the seller explicitly claims an item is genuine (through written, verbal, or online means) but later it is found to be counterfeit, the buyer may seek compensation under consumer law. Additionally, even if the seller had no fraudulent intent, if the pricing leads to major misunderstandings or unfairness, the transaction could still fall under consumer law.
Frontline participants, including auction houses, cultural market operators, and collectors, shared their experiences, highlighting the complexity of the private collection market. They noted that due to the uncertain identities of buyers and sellers, the historical and cultural value of the items, and the lack of clear standards, applying strict legal measures like "double compensation" often proves impractical.
Notably, many attendees of the symposium were collectors themselves, and they agreed that the popularity of private collections reflects a society that is both civilized and developed. The growth of the private collection market contributes to social harmony and stability. While it needs guidance and regulation, the application of consumer law should not be a one-size-fits-all approach. Moreover, there is a need for more comprehensive rules governing the private collection market to ensure fairness and transparency, which should draw greater public attention.
August 29, 2025