Filed under product-liability
Every brief tagged "product-liability".
- § 01 · SPC
Fa Fa [2026] No. 10: How the Supreme People's Court Explains Its First Adjudication Rules for AI Disputes
On 7 September 2026 the Supreme People's Court released the Opinions of the Supreme People's Court on Trying Cases Involving Artificial Intelligence Disputes in Accordance with Law (最高人民法院关于依法审理涉人工智能纠纷案件的意见), document number Fa Fa [2026] No. 10 (法发〔2026〕10号) — the first adjudication-rules document on AI from China's highest court. This brief translates the Court's own release note in full: the drafting background (the April 2025 Politburo study session, the 15th Five-Year Plan's call for rules on AI-generated output, the State Council's IP plan), the four drafting considerations (including the Court's statement that China has no dedicated AI law, so the Opinions work through the Civil Code, PIPL, Copyright Law, AUCL, Consumer Protection Law and Civil Procedure Law), and the part-by-part summary of the 24 articles. DCC then maps every article for overseas counsel — the fault-based default under Civil Code Art. 1165(1); the Article 4 rules on AI face-swapping, voice cloning and 'AI resurrection'; the Article 5 doxxing rule; Article 6 on training with lawfully public personal information; Article 7's notice-and-takedown rule for generative-AI providers; Article 8 injunctions; Article 9's physical-carrier limit on 'AI product'; Article 10 on algorithmic price discrimination and celebrity-impersonation fraud; Article 11 on autonomous and assisted driving; the IP articles 12–16 (training-data disclosure by developers, open-source exemption, AI-assisted inventions, technology contracts, data use under copyright, trade secrets and AUCL Art. 13); the procedure articles 17–20 (adverse inference, evidence review of AI output, sanctions for AI-fabricated evidence, the duty to verify and disclose AI-generated filings); and the working-mechanism articles 21–24 — and explains what a 法发 document is and is not.
- § 02 · AI-GOVERNANCE
China's First 'AI Hallucination' Tort Judgment — GenAI Is a Service, Not a Product, and the Chatbot's '¥100,000 Promise' Binds No One
The Hangzhou Internet Court has decided China's first 'AI hallucination' (AI幻觉) tort case — written into the Supreme People's Court's 2026 work report to the NPC. A user asking a chatbot about college applications was told, across seven rounds, that a non-existent campus existed; when finally shown the official website, the model 'apologised' and 'promised' to pay ¥100,000, even generating a fake lawsuit template telling him to sue. He did. The court dismissed every claim and, in doing so, laid down the first judicial articulation of China's generative-AI liability framework: (1) an AI model is not a civil subject, so its 'promise' is no declaration of intent — and is not attributable to the provider either; (2) generative AI is a service, not a product, so fault liability under Civil Code Article 1165 applies, not product liability's no-fault rule under Article 1202; (3) there is no result-based duty to guarantee accuracy for ordinary inaccurate output — only a process duty of care (conspicuous AI-content labelling plus industry-standard accuracy measures), which the provider had discharged; and (4) no proven damage, no causation. For any company deploying GenAI to the Chinese public, this is the operating liability surface and the evidentiary playbook.