China Approves First Movie Industry Law to Thwart Box Office Fraud

BEIJING China approved on Monday its first film industry law to severely punish firms for falsifying box office records and other similar data.

According to the law approved by the Chinese legislature, authorities will confiscate illegal earnings by film distributors and theaters with fines exceeding 50,000 yuan (about $7,380) for data found to be falsified.

In case the illegal income exceeds 500,000 yuan, the fine will be up to five times the amount falsified, state-owned news agency Xinhua reported.

In more serious cases, firms will be suspended and even have their licenses cancelled.

The law, which will regulate what is the worlds second largest movie market, was approved in the bi-monthly session of the Permanent Committee of the National Peoples Congress after a third reading.

Chinese box office earnings reached 38 billion yuan until October this year, and is expected to overtake the North American box office in 2017 as the worlds largest.

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