Legal Regulations On Prepayment

With the increase of prepayment rapidly coming into people’s daily in recent years, the risk of prepayment emerges significantly under the surface of so called win-win result. On the one hand, the consumer is required to pay a certain expense or cost(usually at a large amount) in advance for prepayment consumer card. Once the seller refuses to provide service or provide defective service after receiving membership fee, it will be adverse to the consumer’s rights and interest. On the other hand, due to a large transaction amount is involved and most of them are under unregistered, negotiable payment instruments, it has provided an opportunity for enterprise, individual to evade or avoid tax as well as to solicit and accept bribes. Therefore, the legal regulation on prepayment in China is still in a daunting condition.Through the empirical analysis of JinShiBao case, the first part is the analysis of existing problem and social phenomenon of prepayment consumption in China. It can be classified into the insufficient basis of government regulation, inundation of unfair competition, unguaranteed consumer’s right and interest, breeding corruption, money laundering, and challenge to tax management system.The second part of this article introduces the data organization of prepayment consumption regulation in China’s existing law. Through the study on law, department laws, other normative documents and local code, this article probes into the specification of prepayment consumption, and analysis of various problems under the existing regulations. The aim is to providing a breakthrough point for introducing advanced experience.The third part is inspection comparison and reference of all regions with advanced experience. In analyzing the regulation of American Value Storage Card, the stipulation of Japanese prepayment L.C. as well as the regulation of gift coupon in Taiwan, China, the paper tries to seek out reference manner and method, providing assistance for China to formulate sound legal regulation on prepayment consumption.Part four is my suggestion to the legal regulation on prepayment consumption. It is a conception in completing China’s legal regulation on prepayment consumption from explicit legal orientation to basis of legal regulation, and from specification legislation to the improvement of supervision mechanism.