The Measures for Determining Illegal Gains in Administrative Penalty Cases of Market Supervision and Management are introduced.

According to the State Administration for Market Regulation, in order to standardize the determination of illegal gains in administrative penalty cases, unify law enforcement standards, promote strict, standardized, fair and civilized law enforcement, the State Administration for Market Regulation has issued the "Measures for Determining Illegal Gains in Market Supervision and Administration Administrative Penalty Cases", which will be officially implemented starting from March 20th this year. The "Measures" consist of 17 articles, clarifying the basic principles, calculation rules, and rules for handling difficult issues in determining illegal gains in the field of market supervision and administration, providing clear guidance for regulatory law enforcement. The "Measures" follow the concept of "prohibiting unlawful gains" and the principle of proportionality in penalties, strictly implementing administrative penalty laws while fully safeguarding the legitimate rights and interests of the parties involved. It specifies that illegal gains refer to the funds obtained through the commission of illegal acts, and stipulates that legitimate and necessary expenses directly used for production and business activities by the parties involved can be deducted when determining illegal gains. It also clarifies the scope of deductions that can be made as legitimate necessary expenses, as well as the burden of proof, enhancing guidance and operability. Additionally, the "Measures" also make provisions for difficult issues such as how to handle cases where illegal gains cannot be confiscated when no administrative penalties are imposed, and how to calculate illegal gains in cases of price violations where additional payments are made or insufficient payments are made, as well as in cases of providing convenient conditions for illegal acts, pyramid schemes involving recruiting members and collecting membership fees. The issuance of the "Measures" establishes a unified, scientific, and standardized mechanism for determining illegal gains in the field of market supervision and administration, which is of great significance for maintaining a fair market order, continuously optimizing the business environment, and promoting the deepening of the construction of a unified national large market.