Analyses From Law Perspective On The Incident Of Collusion To Instant Noodle Mark-Up Between International Ramen Manufactures Association China Branch And Its Relevant Enterprises

From December 2006 to July 2007, International Ramen Manufactures Association China Branch took the lead and the major instant noodle enterprises of China acted in collusion to mark up the price of instant noodle. This case had resulted in nationwide impact. The above act was already halted by the National Department and Reform Commission, also compelled to offer an apology. Meanwhile, Chinese Food Science and Technology Institute was also compelled by the Ministry of Civil Affairs not to use the name of 'International Ramen Manufactures Association China Branch" any more. However, many involved questions still needed to carry out an in-depth study from perspectives of law.In this paper, a research is carried out from law perspective to analyze the case. Also, the related Countermeasures are also put forward in order to avoid the occurrence of similar incidents through improve the relevant legal system. The article is divided into four parts:Partâ… introduces the case of collusion to instant noodle mark-up between International Ramen Manufactures Association China Branch and its relevant enterprises. From the end of 2006, International Ramen Manufactures Association China Branch colluded with China's major enterprises of instant noodle collectively to decide in raising the price of instant noodle, and made it to be implemented. It seriously disrupted the order of market competition. The act was prohibited by the National Development and Reform Commission in July 2007.Partâ…¡relates to the cognizance of International Ramen Manufactures Association China Branch and its relevant enterprises acting in mark-up collusion. From the legal analyses of the behavior, we can find that: firstly, International Ramen Manufactures Association China Branch and the related enterprises were acting in collusion to raise the price of instant noodle with constitution of price Cartel; secondly, the behavior of collusive mark-up harms the interests of consumers. It seriously violates consumers' rights to know and to choose and unreasonably increases the consumers' financial burden; thirdly, International Ramen Manufactures Association China Branch acts in collusion to mark-up, which is violation of Nation Trade Association with its function positioning. Association's main functions focus on the provisions in service, coordination, self-discipline and maintaining the order of market competition rather than competition restriction.Partâ…¢discusses that the case of collusion to mark-up reflects some market regulation problems of government. Analyzing this case, we can find some problems as follows: firstly, defective legislation of stipulating trade association in competition restriction. No unitary legislation of stipulating trade association's competition restriction in China. Trade association is easily controlled by large enterprises and deviates from proper functions; secondly, lack of national supervision and minor punishments of price cartel. National Development and Reform Commission passively exercised supervision and inflicted minor punishments on trade association; thirdly, the registration of trade association has some oversights. It can't be found until 2007 that International Ramen Manufactures Association China Branch had no register in the Ministry of Civil Affairs.Partâ…£proposes some related advices. Based on the illegal behavior and its causes of part 2 and part 3, this part gives some advice to avoid the occurrence of similar incidents. Firstly, it is pressing to perfect the legal system of trade association in amending existing laws and unifying the legislation; secondly, strengthening anti-monopoly control on trade association's competition restriction. It should be meticulous in relevant provisions on regulating trade associations and improving the trade associations' legal responsibility if they restrict competition. Thirdly, providing effective relief channel to safeguard the legitimate rights and interests of consumers. It is inevitable to improve relevant laws and give consumers' association the right to prosecute. Then it can protect the consumers' legitimate rights effectively. Finally, effectively overcoming the failure of government regulation; strengthening the governmental responsibilities and being strict with the legal responsibilities of government and civil servants.