The top legislature on Monday adopted a law on the film industry, promising harsh punishment for firms that fabricate box office earnings or information.
Film distributors and theaters will have all their illegal earnings confiscated and be fined upward of 50,000 yuan (about $7,380) if they falsify ticket sales, according to the law adopted at the National People's Congress (NPC) Standing Committee bi-monthly session after a third reading.
If their illegal earnings exceed 500,000 yuan, the fine will be up to five times their illegitimate earnings.
They may also be slapped with an operating suspension or have their business certificates revoked in serious cases, according to the law.
The law is the first of its kind in China, currently the world's second largest film market.
China's box office takings had exceeded 38 billion yuan as of October, leading to speculation that China's market will surpass North America's as early as 2017.
