The following main rules govern online advertising in China:
Legislation: Advertising Law 2021 (amended).
Administrative Regulations:
Administrative Measures for Internet Advertising 2023.
Provisions on the Governance of Network Information Contents Ecosystem 2019.
Self-Regulatory Codes: The China Advertising Association, an industry self-regulation body, has developed codes for advertising, such as the Self-Regulation Pact.
Targeted and Behavioural Advertising
Online advertising covers commercial ads promoting products or services through internet media, including websites, apps, and digital formats like images and videos. Editorial content is treated as advertising if it involves paid promotion for profit.
The Administrative Measures for Internet Advertising 2023 regulate algorithm use in advertising. Advertisers must maintain documentation on algorithmic recommendations and ad placements, with non-compliance risking penalties.
Misleading Advertising
Regulations against misleading online ads are found in:
Anti-Unfair Competition Law 2019.
Advertising Law 2021.
Administrative Measures for Internet Advertising 2023.
Advertisers must verify the truthfulness of claims. False enhancements of product effects, especially through digital means, are penalised as false advertising. Specific rules require a clear exit option for pop-up ads, preventing misleading or forced clicks.
Advertising Restrictions
Under the Advertising Law 2021, certain products are prohibited from online advertising:
Narcotics, psychotropic substances, and other controlled drugs.
Certain pharmaceuticals, with prescription drugs limited to specific medical journals.
Additionally, the Administrative Measures for Internet Advertising 2023 ban ads for tobacco, e-cigarettes, and prescription drugs online. Ads targeting minors cannot include medical treatments, health foods, or other products unsuitable for youth. Some products, like medical treatments and health foods, require prior approval before online advertising.
Hosting Liability
Internet service providers are responsible for preventing illegal ads if they are aware of such content. The Advertising Law 2021 mandates fines for non-compliance, with severe cases requiring suspension of services.
Article 1195 of the Civil Code allows rights holders to demand internet providers remove infringing content. Providers that fail to act may face joint liability with users. The Anti-Telecom and Online Fraud Law also imposes penalties for failing to verify, register, or monitor users, with potential criminal charges for serious violations.
In summary, internet service providers must maintain high standards in information verification, security, and due diligence to limit liability.
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