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In the realm of private collections, the principle of "anti-fraud and no counterfeiting" has long been a foundational belief. However, recent legal developments have sparked debates, particularly regarding the court's practice of awarding double compensation. With March 15th — Consumer Rights Day approaching, questions arise: Do private collectibles transactions fall under consumer protection laws? According to an official from the China Consumers Association, if someone purchases a counterfeit item in a private collection, can they claim "double compensation" under the Consumer Law?
At a recent seminar on private collections and consumer rights, Wang Zouhu, director of the Complaints and Legal Affairs Department at the China Consumers Association, emphasized that applying the "elimination method" (commonly known as "double compensation") to the private collection market cannot be generalized. This view was supported by jurists, lawyers, and collectors who attended the event, which was organized jointly by a newspaper and *China Collection* magazine.
Over the past few years, the private collection market has seen a surge in popularity, with diverse forms of collecting becoming increasingly common. However, this growth has also led to a rise in disputes, especially those involving counterfeit goods. Due to the unique nature of private collection transactions, local authorities and courts often differ in their interpretations of whether consumer laws should apply. These inconsistencies have, in some cases, hindered the smooth development of the market.
Wang Zouhu noted that with the increasing significance of private collections and growing public interest, it is crucial to hold discussions on how consumer rights laws interact with this sector. The rapid expansion of the private collection market has brought new challenges, making this seminar timely. It aims to clarify how to define the private collection market and address specific disputes. A clearer understanding of which laws apply and when they don't will help consumers make more informed decisions and better protect their rights.
Can consumer law regulate all private collection transactions? Wang Zouhu believes that in common trade fairs where private collections are frequent, if sellers do not intentionally deceive buyers, the "double compensation" rule may not apply. When fake items are sold, whether or not they fall under consumer law depends on the context. For example, if a seller sells a modern-made item labeled as "Ming Dynasty" at the price of a regular handicraft, it would typically not qualify for consumer law protections.
Professor Zhao Qun from the China University of Political Science and Law stated that consumer law applies only if three conditions are met: the party involved is a business operator, the behavior is illegal, and there is subjective fault. If any of these elements are missing, consumer law should not be applied. Transactions between individuals or in private settings are generally governed by civil law, not consumer law.
Zhao Zhongfu, a professor at Renmin University of China, suggested that the "elimination method" should apply to transactions involving commercial operators such as antique shops or craft stores. If a seller explicitly claims an item is genuine — through written, verbal, or online means — but it turns out to be fake, the buyer may seek compensation under consumer law. Additionally, if a transaction leads to significant misunderstanding or unfairness, even without intent to deceive, consumer law could still be applicable.
Frontline participants in the private collection market, including auction houses, cultural market operators, and collectors, shared their experiences. They argued that due to the complex and unique nature of private collections — including uncertain identities of buyers and sellers, and the historical and cultural value of items — applying strict legal measures like "double compensation" is often impractical.
Notably, many attendees of the symposium were both members of the China Consumers Association and collectors themselves. They agreed that a thriving private collection market reflects a society that is more civilized and developed. The growth of private collections contributes positively to social harmony. While the market needs guidance and regulation, the question of whether or not to apply the "elimination method" should not be overemphasized. Instead, more comprehensive rules should be established to ensure fair practices and raise public awareness.
August 29, 2025