Page 58 - index
P. 58
LEGISLATION
China’s amended ‘Advertisement Law’
has been put into practice
Around a year ago, China passed the draft amendments advertising activities which compromise consumer
to its ‘Advertising Law’, which came into effect six interests. The AIC will furthermore be required to
months ago. The ‘Amended Law’ represents the first ma- keep records of false advertising activities and will
jor revision since the Advertising Law got introduced in have the power to publish them.
1995 and brings significant changes to the regulatory
regime for advertising activities in China. Undeniable the 3-year ban for engaging endorsers who fall foul
‘Amended Law’ sends out a signal that China is keen to of the ‘Amended Law’: One major change is that
strengthen consumer protection by clamping down on celebrities or other endorsers recommending a prod-
undesirable advertising activities. uct or service may be held liable if they know, or
ought to know, that the advertisement amounts to
false advertising. In addition, the ‘Amended Law’
The legal expert firm Hogan Lovells listed spot on the imposes a ban on further engaging endorsers who
major changes, which include: were held liable of recommending false advertising
for a 3-year period.
Prohibition of “misleading advertising”: The Restrictions on advertising healthcare food and
‘Amended Law’ broadens the definition of “false ad- breast milk substitutes: The ‘Amended Law’ pro-
vertising” by expressly prohibiting both false and mis- hibits the advertising of healthcare food, pharmaceu-
leading advertising contents.
tical products, medical equipment and the like under
Unsubscribe facility: In addition to the prohibition on the disguise of “health information” programs or col-
sending advertisements to home addresses or in umns on radio or TV stations, printed media or on
electronic format without the recipient’s consent or the Internet. It also introduces a ban on advertise-
request, the ‘Amended Law’ also requires that adver- ments on mass media and public premises for baby
tisements sent in electronic format must display the dairy products, drinks and other baby food which
sender’s real identity and contact details, together claim to serve as a substitute for breast milk.
with information about how the recipient can unsub- “It has a wide scope, and it is expected that further im-
scribe from further advertisements. Violations of these plementing measures or interpretations may be issued
rules are punishable by a fine of up to RMB 30,000. in the future to give further guidance on the application
Increased enforcement powers: It is noteworthy of the new law. In the meantime, it is advisable for
that the ‘Amended Law’ also provides that any entity brand owners to review their advertising practices in
or individual may report suspected false advertising China to ensure compliance, especially in light of the
activities to the Administration for Industry and Com- potential surge of regulatory enforcement and consum-
merce (AIC), which will be required under the law to er complaints. That said, false advertising is not solely
handle the case and notify both parties within 7 work- about legal liabilities or monetary compensation; very
ing days. In addition, the China Consumers’ Associa- often it is the reputational and publicity issues which
tion and other consumer protection organizations will really matter”, Hogan Lovell concludes.◊
also be empowered under the law to monitor false Source: Lexology
58 Asian eMarketing - March 2016 Marketing Automation: Retargeting, Programmatic & Real-time Marketing
58
China’s amended ‘Advertisement Law’
has been put into practice
Around a year ago, China passed the draft amendments advertising activities which compromise consumer
to its ‘Advertising Law’, which came into effect six interests. The AIC will furthermore be required to
months ago. The ‘Amended Law’ represents the first ma- keep records of false advertising activities and will
jor revision since the Advertising Law got introduced in have the power to publish them.
1995 and brings significant changes to the regulatory
regime for advertising activities in China. Undeniable the 3-year ban for engaging endorsers who fall foul
‘Amended Law’ sends out a signal that China is keen to of the ‘Amended Law’: One major change is that
strengthen consumer protection by clamping down on celebrities or other endorsers recommending a prod-
undesirable advertising activities. uct or service may be held liable if they know, or
ought to know, that the advertisement amounts to
false advertising. In addition, the ‘Amended Law’
The legal expert firm Hogan Lovells listed spot on the imposes a ban on further engaging endorsers who
major changes, which include: were held liable of recommending false advertising
for a 3-year period.
Prohibition of “misleading advertising”: The Restrictions on advertising healthcare food and
‘Amended Law’ broadens the definition of “false ad- breast milk substitutes: The ‘Amended Law’ pro-
vertising” by expressly prohibiting both false and mis- hibits the advertising of healthcare food, pharmaceu-
leading advertising contents.
tical products, medical equipment and the like under
Unsubscribe facility: In addition to the prohibition on the disguise of “health information” programs or col-
sending advertisements to home addresses or in umns on radio or TV stations, printed media or on
electronic format without the recipient’s consent or the Internet. It also introduces a ban on advertise-
request, the ‘Amended Law’ also requires that adver- ments on mass media and public premises for baby
tisements sent in electronic format must display the dairy products, drinks and other baby food which
sender’s real identity and contact details, together claim to serve as a substitute for breast milk.
with information about how the recipient can unsub- “It has a wide scope, and it is expected that further im-
scribe from further advertisements. Violations of these plementing measures or interpretations may be issued
rules are punishable by a fine of up to RMB 30,000. in the future to give further guidance on the application
Increased enforcement powers: It is noteworthy of the new law. In the meantime, it is advisable for
that the ‘Amended Law’ also provides that any entity brand owners to review their advertising practices in
or individual may report suspected false advertising China to ensure compliance, especially in light of the
activities to the Administration for Industry and Com- potential surge of regulatory enforcement and consum-
merce (AIC), which will be required under the law to er complaints. That said, false advertising is not solely
handle the case and notify both parties within 7 work- about legal liabilities or monetary compensation; very
ing days. In addition, the China Consumers’ Associa- often it is the reputational and publicity issues which
tion and other consumer protection organizations will really matter”, Hogan Lovell concludes.◊
also be empowered under the law to monitor false Source: Lexology
58 Asian eMarketing - March 2016 Marketing Automation: Retargeting, Programmatic & Real-time Marketing
58
