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NA BRIEFING South China Business Journal
China’s New Advertising Law:
Key Considerations and Implications
for Online Advertisers
Over the past several years, the Chinese government Products and services requiring approval
has turned its attention toward greater regulation of
advertising, and more recently of online advertising. Following The Interim Measures for the Administration of Internet
in the footsteps of the amended Advertising Law implemented Advertising applies to products and services under the same
in 2015, the State Administration of Industry and Commerce’s scope as the preexisting Advertising Law, which has been in
(SAIC) Interim Measures for the Administration of Internet effect since 2015. The new regulation reiterates the online
Advertising came into effect on September 1, 2016. The new advertising restrictions included in the Advertising Law,
regulation clarifies what content is considered “internet prohibiting online advertisements for prescription drugs and
advertising,” lays down rules for “publishers” of online tobacco products. The regulation also states that the following
advertisements, and outlines investigation measures and products require review before being published online:
penalties for violators. Given the ubiquity of online advertising •Medical treatments
in China, the regulations will have a widespread impact on the •Pharmaceuticals
actions of advertisers and platform operators. •Foods for special medical purposes (FSMP)
•Medical devices
What qualifies as “internet advertising”? •Pesticides
•Veterinary drugs
According to the regulation, internet advertising encompasses •Dietary supplements
the following activities:
•Product promotion via text, pictures, videos, links Effects of the Regulation
•Email advertisements
•Paid search advertisements Implications for Advertisers
•Advertisements within commercial presentations The regulation holds advertisers responsible for the veracity
In practice, any digital content placed on any online platform of their content. In addition to this, advertisers are prohibited
with the intent of promoting a product or service could be sub- from engaging in deceptive or disruptive online advertising
ject to the regulation. tactics and from unfair competition tactics.
Who is an internet advertising “publisher”? To avoid disrupting internet users, a one-click close option is
required on pop-up advertisements. Advertisers are not allowed
The regulation identifies individuals or groups called “publish- to send advertisements in emails without permission from
ers” who hold the responsibility of complying with the online recipients, and email advertisements must include opt-out
advertising rules (and are subject to penalties when in viola- links. Additionally, advertisers may not use disruptive tactics to
tion). Any entity conducting the following activities is consid- entice users to click on links, either in emails or on web pages.
ered an internet advertising “publisher”: Under the regulation, advertisers are also barred from using
•Displaying or submitting internet ads unfair competition methods such as interfering with the display
•Verifying or moderating submitted ads for publishing of competitors’ advertisements using applications or network
Notably, this group includes both content creators and platform devices.
operators such as search engines or content sharing platforms
that host third-party advertisements.
6
China’s New Advertising Law:
Key Considerations and Implications
for Online Advertisers
Over the past several years, the Chinese government Products and services requiring approval
has turned its attention toward greater regulation of
advertising, and more recently of online advertising. Following The Interim Measures for the Administration of Internet
in the footsteps of the amended Advertising Law implemented Advertising applies to products and services under the same
in 2015, the State Administration of Industry and Commerce’s scope as the preexisting Advertising Law, which has been in
(SAIC) Interim Measures for the Administration of Internet effect since 2015. The new regulation reiterates the online
Advertising came into effect on September 1, 2016. The new advertising restrictions included in the Advertising Law,
regulation clarifies what content is considered “internet prohibiting online advertisements for prescription drugs and
advertising,” lays down rules for “publishers” of online tobacco products. The regulation also states that the following
advertisements, and outlines investigation measures and products require review before being published online:
penalties for violators. Given the ubiquity of online advertising •Medical treatments
in China, the regulations will have a widespread impact on the •Pharmaceuticals
actions of advertisers and platform operators. •Foods for special medical purposes (FSMP)
•Medical devices
What qualifies as “internet advertising”? •Pesticides
•Veterinary drugs
According to the regulation, internet advertising encompasses •Dietary supplements
the following activities:
•Product promotion via text, pictures, videos, links Effects of the Regulation
•Email advertisements
•Paid search advertisements Implications for Advertisers
•Advertisements within commercial presentations The regulation holds advertisers responsible for the veracity
In practice, any digital content placed on any online platform of their content. In addition to this, advertisers are prohibited
with the intent of promoting a product or service could be sub- from engaging in deceptive or disruptive online advertising
ject to the regulation. tactics and from unfair competition tactics.
Who is an internet advertising “publisher”? To avoid disrupting internet users, a one-click close option is
required on pop-up advertisements. Advertisers are not allowed
The regulation identifies individuals or groups called “publish- to send advertisements in emails without permission from
ers” who hold the responsibility of complying with the online recipients, and email advertisements must include opt-out
advertising rules (and are subject to penalties when in viola- links. Additionally, advertisers may not use disruptive tactics to
tion). Any entity conducting the following activities is consid- entice users to click on links, either in emails or on web pages.
ered an internet advertising “publisher”: Under the regulation, advertisers are also barred from using
•Displaying or submitting internet ads unfair competition methods such as interfering with the display
•Verifying or moderating submitted ads for publishing of competitors’ advertisements using applications or network
Notably, this group includes both content creators and platform devices.
operators such as search engines or content sharing platforms
that host third-party advertisements.
6
