Advertising in China is not only tricky technically and culturally it may be tricky legally. Have you seen ads like "best on the market" or "lowest price guaranteed"? Well, if you use such wordings in China you are most likely breaking the law.
Who should be aware of China's Advertising Law?
Honestly, anyone doing any, and I mean it, any business in China. Whether you buy ads, sell offline, or even don't sell and advertise it still may affect you. Whether you are in B2B or B2C sector, digital or offline, present physically in China or not, you should really pay attention to your activity within the market. The law bounds all advertising activity and it's pretty vague in describing it. In reality, it concerns your website, WeChat account, other social media, and definitely all your promotional materials.
There are a few main points from that huge and vague law that I want to draw your attention to.
1. Superlatives
All the wordings like "the best", "the fastest", "the cheapest" and so on are prohibited. I face a lot of companies entering the market still using such wordings on their website as they did in their home countries, and most of them get away with it but trust me there are cases of those who didn't get away and were fined massive amounts.
2. False or misleading advertising
Quick example: Estée Lauder (China), the global beauty and skincare brand, received a penalty of USD 350,000 in January 2022 for deceptive advertising. The advertisement for its product "Advanced Night Repair Essence" claimed to enhance "Youth Index + 77%" and improve "Softening + 17%, Smooth + 20%, translucent +15%," among other things. Anything you can't prove is illegal to advertise. Another one: A company promoting its service with the phrase “years of experience" was fined as it was registered in China just a few months ago, and it was not a TV ad, it was a post in a WeChat account.
3. Personal Information Protection Law (PIPL)
You'd think how personal data protection affects advertising. Well, quite direct. Do you use customer testimonials with the names and even pictures of the clients? You'd need their legal consent to do so.
What are the penalties?
It varies and it's pretty hard to forecast what fine is going to be issued once such misconduct is detected. There are fines of USD 800 and USD 300 000 for similar cases. And fines are not the only outcome, business license withdrawal and even criminal prosecution for some extreme violations. However, what should you be worried about even more than a fine is your reputation. And such small things as saying "the most innovative" on your website can significantly damage your reputation. Sounds quite ridiculous but China has an administrative Penalty Decision Database and the National Corporate Credit System which is publicly available. Any such case would be recorded there and may harm your company's image in the long run.
Is it even possible to advertise legally?
First, be careful with the points above and I hope even this simple text can be helpful. We are expected to see more strict monitoring of business activities. However, it's tricky but quite easy to adopt certain practices to ensure you are within the legal framework. Hire talented experts and be ready to adapt to new realities but the reward of the market and advertising in it is worth its peculiarities.
Who should be aware of China's Advertising Law?
Honestly, anyone doing any, and I mean it, any business in China. Whether you buy ads, sell offline, or even don't sell and advertise it still may affect you. Whether you are in B2B or B2C sector, digital or offline, present physically in China or not, you should really pay attention to your activity within the market. The law bounds all advertising activity and it's pretty vague in describing it. In reality, it concerns your website, WeChat account, other social media, and definitely all your promotional materials.
There are a few main points from that huge and vague law that I want to draw your attention to.
1. Superlatives
All the wordings like "the best", "the fastest", "the cheapest" and so on are prohibited. I face a lot of companies entering the market still using such wordings on their website as they did in their home countries, and most of them get away with it but trust me there are cases of those who didn't get away and were fined massive amounts.
2. False or misleading advertising
Quick example: Estée Lauder (China), the global beauty and skincare brand, received a penalty of USD 350,000 in January 2022 for deceptive advertising. The advertisement for its product "Advanced Night Repair Essence" claimed to enhance "Youth Index + 77%" and improve "Softening + 17%, Smooth + 20%, translucent +15%," among other things. Anything you can't prove is illegal to advertise. Another one: A company promoting its service with the phrase “years of experience" was fined as it was registered in China just a few months ago, and it was not a TV ad, it was a post in a WeChat account.
3. Personal Information Protection Law (PIPL)
You'd think how personal data protection affects advertising. Well, quite direct. Do you use customer testimonials with the names and even pictures of the clients? You'd need their legal consent to do so.
What are the penalties?
It varies and it's pretty hard to forecast what fine is going to be issued once such misconduct is detected. There are fines of USD 800 and USD 300 000 for similar cases. And fines are not the only outcome, business license withdrawal and even criminal prosecution for some extreme violations. However, what should you be worried about even more than a fine is your reputation. And such small things as saying "the most innovative" on your website can significantly damage your reputation. Sounds quite ridiculous but China has an administrative Penalty Decision Database and the National Corporate Credit System which is publicly available. Any such case would be recorded there and may harm your company's image in the long run.
Is it even possible to advertise legally?
First, be careful with the points above and I hope even this simple text can be helpful. We are expected to see more strict monitoring of business activities. However, it's tricky but quite easy to adopt certain practices to ensure you are within the legal framework. Hire talented experts and be ready to adapt to new realities but the reward of the market and advertising in it is worth its peculiarities.
