[Case Study 3]

Yanzhao Evening News reported, on May 28th, 2007, that the Vehicle Cleaning Committee of Shijiazhuang City Appearance and Environmental Hygiene Association issued a unified pricing guideline for Shijiazhuang's motor vehicle cleaning industry to safeguard the interests of vehicle cleaning businesses and regulate the management of the vehicle cleaning industry". Based on this clue, the Shijiazhuang Pricing Bureau conducted an investigation into the case. It was found after investigation that the Vehicle Cleaning Committee, after consulting with the major vehicle cleaning businesses in the city, issued the "Notice on Regulating the Charging Standards for Motor Vehicle Cleaning" to 189 vehicle cleaning businesses in the urban area on May 27th, 2007, which provides for the following referential prices for the motor vehicle cleaning industry in the whole city: RMB 15 for one-time service and RMB 100/8 times for membership in case of small vehicles; RMB 20 - 30 for one-time service in case of medium vehicles; and RMB 40 - 60 for one-time service in case of large vehicles. The new standard was enacted on May 28, 2007. Analyze the legality of the actions of the Vehicle Cleaning Committee and the penalties therefor.
Reference answers:
According to Article 14 of the Pricing Law, business operators shall not manipulate market prices by colluding with each other, resulting in damages to the legitimate rights and interests of other business operators or consumers. Penalties: They shall be ordered to make corrections, their illegal gains shall be confiscated, and a fine of no more than 5 times the illegal gains may be imposed, or a warning shall be given and a fine may be imposed if there are no illegal gains. In case of any serious consequence arising therefrom, they shall be ordered to suspend business for rectification or their business license shall be revoked by the industrial and commercial authority. Therefore, the "Notice" of the Vehicle Cleaning Committee should be deemed invalid.