Chinese authorities have introduced strict punishments to deter companies from fabricating ticket sales and other data.
Under the country’s first film law, which was adopted by the Chinese parliament on Monday, film distributors and cinemas that falsify ticket sales data will have their illegal earnings confiscated and be fined up to $74,000 (£59,500 / €67,000). If they illegally earn more than that, they will be fined up to five times the amount they illegally made.
Operators found guilty may also have their business licenses revoked.
According to the Associated Press news agency, box office fraud is widespread in China, with cinemas and distributors falsifying sales to boost a movie’s profile or attract a bigger audience. Cinemas might also conceal their true ticket sales to avoid sharing all the takings with the film makers.
China’s box office, which saw revenue increase by 50 per cent to $6.5bn in 2015, is expected to overtake the world’s current largest, North America, within the next three years.
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