Liu Junhai, deputy director of the China Consumers' Association, said there are different compensation standards in different parts of the country.

"So the amount of money received by consumers in different regions of the country will be different," he said.

"Say in Beijing, the compensation for death will be much higher than a similar case in inland areas."

Zhou Dewen, chairman of the Wenzhou Small and Medium-sized Enterprises Development Association, said the stiffer punishment is in line with the current economic picture.

He said the stipulation can improve the current legal system in China, as well as potentially decrease food safety incidents.

"Despite repeated bans, food safety incidents caused by intentional contamination by producers out of economic benefits did not stop. An increased penalty will work as a warning sign and is essential," Zhou said.

But he also argued that the amount of compensation cannot repay the loss of a victim's life or the suffering of the consumer.

Businesses also welcomed the new rule, saying it is reasonable that cheating will bring about punitive damages.

"The rule will also make food distributors carry out more stringent quality checks. If they have rotten or broken products, they'll feel more obligated to return the goods to suppliers," said Zhang Jianjiang, general manager of Shanghai Han Dynasty Restaurant Management Co Ltd.

Celebrities could be held liable

Celebrities could be held accountable for deceptive advertising if they endorse a health product that injures consumers, a draft amendment proposed on Monday.

The draft amendment to the Law on the Protection of Consumer Rights and Interests suggested that those designing, making and publicizing false advertising of products or providing services should bear joint liability if the products and services affect consumers' health and causes harm.

Any "social groups, organizations and individuals" who endorse substandard products to consumers in a false advertisement should also bear their share of responsibility, the draft amendment proposes.

Yao Hui, a law professor at Renmin University of China, said although the stipulation can apply to any individual, it will mostly affect celebrities.

"Although sometimes celebrities do not know in advance that the products have quality problems, they should also be held liable for their endorsement, since many consumers purchase the products only because of the advertisement," Yao said. "In that case, the advertisement and the purchase are in a causal relationship."

But Yao suggested lawmakers make clear whether individuals, including celebrities, should take the responsibility after an endorsement has ended.

"A consumer may keep buying a product for many years even after the advertisement has stopped. To what degree should the individual be responsible for the endorsement in those circumstances?" he said.