ABSTRACT

This chapter examines the dispute resolution system used for handling consumer grievances in one of China’s most important new cities. It points to the distinctive nature of consumer disputes and how such disputes are handled through processes involving the local Consumer Council and the regulator, the Market Supervision Administration bureau. Popular thinking continues to see the government as bearing significant responsibility for ensuring consumer justice. At the same time, activist consumers seek to use various channels, including the court, to secure remedies and compensation more aggressively. The analysis finds that mediation continues to be the dominant dispute process for handling consumer disputes and that it has a significant social welfare function in China. Such a system works well in several aspects, but the lack of formal mechanisms for consumers to vindicate rights in court limits their access to justice.