Advertising Industry

Picture 13 Guidance of Advertisement Compliance

According to the core data of 2019 China’s Online Advertising Market Report released by iResearch, the size of China’s online advertising market in 2018 reached RMB 484.4 billion yuan, which indicates a year-onyear increase of 29.2%.China’s advertising business in 2018 was RMB 799.15 billion yuan, a 15.9% growth compared with 2017 which was the largest increase in the past six years.(https://www.daowen.com)

Advertising, as an effective marketing method with a wide range of publicity, short publicity time, and a large number of receiving people, has become an important way for brands and companies to boost their popularity when entering Chinese market.However, the problem of non-compliance caused by advertisements occurs frequently since that brands and companies do not understand the relevant laws.They may not only face legal sanctions, but also face the negative impact on brand image and market trust.

Under the Chinese legal system, advertising compliance is multifaceted.It is necessary to pay attention not only to the advertising contents,forms, publicity methods, but also to the selection of advertising endorsers and other advertising-related issues.The laws and regulations involved in the advertising industry include, but are not limited to: the Advertising Law of the People’s Republic of China (Order No.16 of the President) amended by the Standing Committee of the National People’s Congress on October 26, 2018, the Anti-Unfair Competition Law of the People’s Republic of China (Order No.29 of the President) revised by the Standing Committee of the National People’s Congress on April 23, 2019, the Regulations on Control of Advertisement (No.94 [1987] of the State Council)issued by the State Council which took effect on December 1, 1987, the Interim Measures for the Administration of Internet Advertising (Order No.87 of the State Administration for Industry and Commerce) issued by the former State Administration for Industry and Commerce which took effect on September 1, 2016, the Measures for the Administration of Medical Advertisements (Order No.26 of the State Administration for Industry and Commerce and the Ministry of Health) issued by the former State Administration for Industry and Commerce and the former Ministry of Health on November 10, 2006, the Measures on Advertising Industry Qualification Recognition of China revised by China Advertising Association through No.49 [2010] of the China Advertising Association on May 28,2010, etc.