Sharing the Opinion on the New Advertisement Law
The new advertisement law has recently taken effective. It brings the great impact on wide industries and has been named as “the ever toughest advertisement law”. We are sharing some main points.
l For advertisement on the medicine, medical device or health food: it is prohibited to invite any image spokesperson. Further, the advertiser should describe the true drug effect. The adverse drug reaction should be clearly pointed out. For any serious illegal situation, the qualification certificate might be cancelled.
l For advertisement on the infant food: it should mention that this product cannot replace the breast milk.
l For advertisement on the education and training: it should not guarantee the result for passing the exam, or directly or indirectly indicate its teacher is involving in proposing the examination.
l For advertisement on the investment: it should mention the possible risk and guarantee the investment result. The referral or proof from the professional institutions is prohibited.
l For advertisement on the real estate: it should mention the property will be appreciation or how far is its location from the program under the construction.
l The description as “the national level”, “the top grade”,”the best” and etc are prohibited. We should remind you of “etc” means the words with similar meaning (e.g. the first, the highest, 100%, 99.9999%, the most) because it means the officer can decide the illegal word at his/her discretion. Its penalty for breaching this clause is RMB200, 000 to RMB 1 million or for a serious situation, the store will be closed.
l For the digital information advertisement (e.g. the SMS, the email), the advertiser should gain the approval for receiving such advertisement.
l For the internet advertisement, it should not impact the normal internet using. The telecom service operator and internet service provider have the obligation to stop any illegal advertisement on the internet.
l Such advisement (e.g. medical treatment, medicine, health food, medical device, cosmetic products, alcohol, tobacco and beauty advertisement and the online game) which is not good for the children growing is not allowed to be published to the children.
l Serious personal liability for publishing the fake advertisement: the business license of the advertiser will be revoked; its legal representative will be not allowed to take the position as the director, supervisor or any other senior management within three years; it might take the personal liability for breaching the law.
Dongjin comment: We suggest each company should make a self-checking on it valid advisement ASAP to avoid any potential risks. It is the time for the government to investigate and prosecute on the current advertisement and the company should make a good preparation for any challenge from the officers.
If you want to know more details, please contact our senior consultant.
Ms. Jojo Hu
TEL: 0086-21-68868335 ext 324 / FAX: 0086-21-68868021
Email: jojohu@shanghaiinvest.com