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Chinese Advertising Law: What You Can, And Can't Say in Ads?Time：2024-06-20 KEY TAKEAWAYS 1. Chinese Advertising Law strictly prohibits the use of absolute superlatives such as “the best” “world-leading” to promote ethical and honest advertising practices. 2. It is prohibited to publicized false or misleading advertising and misrepresented product benefits, to protect consumers from deceptive marketing practices. 3. It’s a gross violation of the law to harm the state’s dignity or interests, public interests, hinder social stability, impede public order, violate social morality, infringe personal rights in advertising. 4. The law prohibits discriminatory content based on ethnicity, race, religion, or sexual orientation in advertisements and aims to promote inclusivity and respect for diversity within society.
In China's Advertising Law, the following content are strictly prohibited to ensure ethical and honest advertising practices: (1) Using Absolute Superlatives Ads cannot include phrases like "the most, best, highest, top level, top-tier, top1, only, first, sales champion, world-leading, industry leader, forever, national level, world level, world premiere", etc. which suggest unrivaled. (2) False and Exaggerated Advertising While advertising often involves exaggeration, this rule targets claims that are demonstrably false. Case1: False Discount Claims Recent cases have exposed businesses falsely claiming product price reductions, despite never offering the items at full price. Such misleading price tactics in advertisements are considered false under the Advertising Law and the Provisions on Administrative Penalties for Price Violations, leading to penalties. Case 2: The company advertised its Anti-Pylori Probiotic Flash-Release Tablets with misleading claims about preventing periodontal disease and inhibiting Streptococcus pyogenes adhesion. However, the product had no such effects, leading to a fine of 100,000 RMB from the market supervision division. (3) Unauthorized Use of State Authority Ads must not falsely claim endorsement by, or covertly use the names or images of, state authorities or officials. For example, "only for ABC national authority" or "endorsed by ABC national leader or ABC national authority," or using an officer's name in the advertisement. (4) Content Restriction Ads cannot contain obscenity, pornography, gambling, superstition, terror, or violence. For instance, an advertising that features an erotic suggestion or a description of the body, or one that talks about God's favors or better fortune. For instance, a business that used images of zombies and dead bones in their ticket advertisement was fined RMB 8,000.
(5) Offenses Against State Dignity or Interests Advertisements must not harm the state's dignity or interests, such as by using an incorrect map of China that omits key areas like Taiwan, the South China Sea islands, or the Diaoyu Islands. Besides, the term of "Former French Concession" is also not allowed in the advertising, as it relates to an area in contemporary China that was leased to France under treaties considered unequal. It transcends mere geographical and cultural descriptors, carrying with it a specific political and historical connotation. The use of this term, along with the implications it bears, is seen as derogatory and harmful to the state's dignity and interests, breaching the stipulations of the Advertising Law. ShackShack Case: on October 22, 2021, ShackShack was fined RMB 200,000 for releasing a poster that featured the term "Former French Concession." The reason given was that the term was perceived as demeaning and oppressive by those who had firsthand knowledge of colonial history, undermining the nation's dignity. (6) Misuse of National Symbols The use or covertly use of the national flag, nationalanthem, national emblem, military flag, military anthem, or military emblem of the People's Republic of China is forbidden. Example: a company was fined RMB 450,000 for hanging Chinese national flag with its company logo on it on its business premises. (7) Impede Public Order or Violate Social Morality Example: The AI's Diner Eating Competition Case The “AL’S DINER” restaurant was recently penalized for promoting an unethical eating contest named the “King of Appetite Muffin Challenge.” The challenge required participants to consume 5 muffins and 1 large milkshake in 10 minutes to receive a free lunch, with leftover food being discarded. The Market Supervision Bureau fined the restaurant RMB 30,000 for contravening social customs of thrift and frugality, as well as violating the Advertising Law. Eating competitions violate Article 9 Clause (7) of the Advertising Law, opposing good social morals, and Article 7 Clause (2) of the Combating Food Waste Law, as they encourage excessive food consumption and are considered immoral and wasteful behavior. Given the broad and nuanced nature of morality, specific guidelines delineating moral from immoral advertising do not exist. Generally, advertisements that propagate harmful or incorrect values may be considered immoral and are subject to penalties under the Advertising Law. (8) Hinder Social Stability and Harm Public Interes Example: A real estate company was fined RMB 20,000 for an ad urging home purchases during COVID-19 to avoid quarantine measures. The ad was deemed to create fear among the homeless and incite housing concerns, harming social stability and public welfare. (9) Endanger Personal and Property Safety, and Infringe upon Personal Privacy Example: The Changzhou wildlife park organized a "stay with the tiger" activity, offering RMB 100,000 per hour for exclusive use of the beasts' tent. Due to the inherent danger and unpredictability of white tigers, the activity could not ensure participant safety. Consequently, the Market Supervision Bureau fined the company 250,000 RMB. (10) Discriminatory Content Ads must avoid content that discriminates on the basis of ethnicity, race, religion or sex. For instance, a media business was fined RMB 200,000 for publishing an advertisement of women's underwear, in which the content of “lying down to win the workplace” was regarded to be a vulgar description, with a tendency to objectify, ridicule, and even discriminate against women. (11) Environment and Culture Harm Example: a restaurant that used images and text depicting wild animals, such as river deer and wild pigs, in its menu and advertisements and caused harm to wildlife conservation was fined RMB 10,000. (12) Infringe Rights and Interests of Others The advertisement shall not infringe the rights and interests of a third party (like intellectual property rights, trade secrets, and other legitimate rights and interests). Example: a business sent three tweets on Sina Weibo with its logo, culture, and other commercial content, along with logos and other content pertaining to the Tokyo Olympic Games. This company violated the Olympic Insignia Protection Regulations and was fined RMB 50,000 for infringement of third party intellectual property.
If an advertiser disagrees with the penalties levied by the Market Supervisory Bureau, they have the option to present supporting evidence (such as awards, certificates, and data) to substantiate their claims. Should the Market Supervisory Bureau maintain its stance on the penalties, the advertiser can request an administrative reconsideration from a higher-level authority within the Bureau or pursue an administrative lawsuit.
Various legal protections are available to consumers in response to the problem of deceptive advertising. One such precaution is the option to file a complaint with the Market Supervision Bureau through the website https://www.12315.cn/ or by calling 12315. The advertiser will face the consequences detailed in the sentences that follow if it is discovered that the advertisement is false. In addition, a consumer has the right to sue the advertiser to recover damages if they believe the advertisement caused them bodily harm or property damage. They can also register a complaint with the Market Supervision Bureau.
In accordance with Chinese Advertising law and regulation, offenders of fraudulent marketing face specific punishments. Upon discovery of fraudulent advertisements, the Market Supervision Bureau mandates the cessation of dissemination and removal of the advertisement’s influence within the appropriate scope. Offenders are fined three to five times the advertising fee; in cases where the fee is indeterminable or notably low, fines range from RMB 200,000 to RMB 1 million. For more serious or repeated offenses exceeding three instances within a two-year period, fines escalate to five to ten times the advertising fee. If the fee is minimal or unascertainable, fines range from RMB 1 million to RMB 2 million. Additionally, the Bureau retains the authority to revoke the offender’s business license and advertisement review and approval document, with no acceptance of further advert review applications.
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