New rule takes time-honored brand status seriously

Some 1,000 time-honored Shanghai food brands will need to continue living up to their reputation by producing quality products, if they still want to hold onto their prestigious status, according to a new regulation that took effect yesterday.

Local companies with the special "well-known Shanghai trademark" status are now being held to higher standards. They risk having the title stripped if they fail to meet quality control regulations, which includes mishandling consumer complaints and providing false marketing information to customers, said authorities.　

The new rule is being introduced weeks after long-established Shanghai snack brand Laiyifen, which holds the well-known Shanghai trademark status, was forced to remove its fruit preservative products from store shelves. A CCTV report found them to contain excessive amounts of food additives, including artificial sweeteners and food coloring.

Local brands entangled in similar scandals will also be prevented from applying for the well-known Shanghai trademark status, an initiative that began recognizing top brands in 1997. Companies wanting to maintain the title need to apply for a renewal annually.

The new regulation should help improve the overall quality of popular food brands, according to Zhang Hong, a lawyer from M&A Law Firm, who specializes in trademark law.

"The increased pressure to produce quality products will encourage companies to pay more attention to what they're selling," he told the Global Times yesterday. "They will want to keep the status to ensure a high volume of sales, while others will be more motivated to secure the status, which will no longer be so arbitrary."