Hotspot · Analysis

Punished for not indicating "advertising" on the additional shopping link of Da Ren Zhan Store

Recently, the Supervision Department of Huangshi City, Hubei Province ordered correction of the behavior that the short video of the promotion of talent shops released by a consulting company in Hubei did not indicate "advertising", and imposed an administrative penalty of 10000 yuan. This case is the first case in China where influencers were punished for violating laws and regulations while visiting stores.

In this case, a consulting limited company in Hubei was an authorized service provider for a social media platform. After signing an internet advertising promotion agreement with the relevant merchants, they searched for influencers to shoot short videos of exploring stores for the merchants. After attaching a shopping link to the influencer platform account, they published the videos, but the relevant promotional short videos did not indicate "advertising"; After consumers generate consumption through shopping links attached to short videos, the company extracts a certain percentage of commission from merchants as promotional expenses. The supervision department of Huangshi City, Hubei Province, said that this kind of behavior may constitute the act of issuing non identifiable advertisements, which is suspected of misleading consumers or even breaking the law, so it made the above punishment.

'Da Ren Tan Dian' refers to influential bloggers who share their personal consumption experiences through live streaming or video, and evaluate and recommend merchants or brands. In recent years, various internet sharing behaviors such as exploring stores, planting grass, experiencing experiences, and conducting reviews on Xiaohongshu/Weibo have had significant online traffic effects, leading to the popularity of batch after batch of "internet celebrity stores". However, these behaviors may constitute advertising and enter the scope of advertising regulation.

The Guiding Opinions on Further Regulating Star Advertising Endorsement Activities issued and implemented on October 31, 2022 by the State Administration for Market Regulation, the Office of the Central Cyberspace Affairs Commission of the Communist Party of China, the Ministry of Culture and Tourism, the National Radio and Television Administration, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, and the State Film Administration pointed out that stars, in order to recommend and prove commodities, should participate in entertainment programs Introducing products during interview programs and online live broadcasts constitutes advertising endorsement behavior.

The Beijing Municipal Market Supervision and Administration Bureau issued the "Compliance Guidelines for Celebrity Advertising Endorsement Behavior in Beijing" on March 30, 2023, which states that celebrities, in their capacity as "experience officers", "recommendation officers", "product officers", or in the name of "partners" or "employees", recommend or prove goods and services, but there is no actual investment, partnership, labor contract or other relationship, which constitutes celebrity advertising endorsement.

The third paragraph of Article 9 of the Measures for the Administration of Internet Advertising management issued by the State Administration for Market Regulation and implemented on May 1, 2023 stipulates that "if goods or services are promoted through knowledge introduction, experience sharing, consumption evaluation and other forms, and purchase methods such as shopping links are attached, advertising publishers shall clearly mark 'advertising'." Article 25 stipulates that: Those who violate the provisions of Article 8 and Article 9 of these Measures by publishing advertisements for medical, pharmaceutical, medical devices, health food, or formula food for special medical purposes in disguised form, or whose internet advertisements are not identifiable, shall be punished in accordance with the provisions of Article 59 (3) of the Advertising Law

So, for short videos of influencers exploring stores, planting grass, and experiencing influencers that are currently spread across major social and media platforms, as long as they are accompanied by links to facilitate jump buying, they belong to internet advertising and should be labeled with the words "advertising". If the "advertisement" is not clearly marked, it is suspected of constituting the act of publishing non identifiable advertisements, which will not only mislead consumers, damage the Social Credit System, but also may be punished by the regulatory authorities.

In addition, "Da Ren Zhan Dian" may also involve many advertising compliance issues, such as prohibited advertising terms and compliance in the form of platform review; Substantive compliance in terms of authenticity and legitimacy of promotion content, endorsement behavior, claim basis, etc. It is suggested that all platforms and talent should put an end to "marginal" behavior, establish an advertising business management system in accordance with the requirements of the Advertising Law and the Internet Advertising management Management Measures, and employ professional advertising compliance personnel for internal audit to effectively avoid possible risks in all aspects.

Industry · New Deal

1. Compliance Guidelines for Beijing Star Advertising Endorsement Behavior

On March 30th, the Beijing Municipal Market Supervision and Administration Bureau issued the "Compliance Guidelines for Celebrity Advertising Endorsement Behavior in Beijing", aiming to fully leverage the positive role of celebrity endorsement advertising in promoting consumption upgrading, activating the market economy, and leading good trends.

The "Guidelines" propose that celebrities should fulfill the following obligations before, during, and after advertising endorsements: to review endorsements in advance, make full use of endorsements, verify advertising content, and follow up and actively cooperate. The symbolic purchase or use of endorsed goods should not be deemed as the advertising spokesperson having fulfilled the obligation to use the goods in accordance with the law. In addition, consciously resist using illegal and unethical celebrities to engage in disguised advertising endorsements through interviews, variety shows, live broadcasts, and other means.

2. Notice on Issuing Fire Safety Guidelines for Screenplay Entertainment Business Places (Trial)

On April 6th, the National Fire and Rescue Bureau and the Ministry of Culture and Tourism issued a notice on the issuance of the Fire Safety Guidelines for Screenplay Entertainment Business Places (Trial).

The "Guide" consists of 20 items in five aspects, clarifying that the building where the entertainment business premises are located in the script should be a legal building and should not be set up on the second or lower underground floors; Not allowed to be installed in residential buildings; It is not allowed to be set up in "three in one" places, color steel buildings, and village (residential) self built houses; It is not allowed to be located in the same building as the production, storage, and operation of flammable and explosive hazardous materials; Do not adjacent to Class A and Class B dangerous goods warehouses. Places that primarily serve children shall not be located underground, semi underground, or on four or more floors above ground. Screenplay entertainment business premises should be equipped with automatic fire alarm systems, fire extinguishers, and other fire-fighting facilities and equipment; Set up evacuation facilities such as fire emergency lighting and evacuation indicator signs; Set up a video surveillance system; Reminder to remind consumers of safety requirements; Implement fire separation; Set up a one button unlocking device, etc.

3. Provisional Regulations on the Management of Screenplay Entertainment (Draft for Soliciting Opinions)

On April 13th, the Ministry of Culture and Tourism announced the "Announcement on Public Soliciting Opinions on the Provisional Regulations on the Management of Screenplay Entertainment (Draft for Soliciting Opinions)", and the deadline for feedback is May 13th.

The Regulations consist of six chapters and thirty-five articles, which regulate content management and protection of minors, as well as script and venue filing. The Regulations implement classified management, dividing script entertainment business units into specialized script entertainment business premises and mixed non script entertainment business premises, and setting up content supervision "Ten Prohibitions", emphasizing the protection of minors. The "Regulations" clearly stipulate that the main body of script creation and production, as well as the entertainment business unit of the script, shall establish a content self-evaluation system, equip content self-evaluation personnel suitable for their business, hire experts to provide review opinions on the age range and content of the script, and record both the script and the business premises.

4. Notice on Further Strengthening the Management of the Performance Market and Standardizing the Order of the Performance Market

On April 21st, the Ministry of Culture and Tourism issued a notice on further strengthening the management of the performance market and regulating the order of the performance market.

The Notice clearly states that the admission system for performance market entities should be strictly implemented, the approval and management of performance activities should be comprehensively strengthened, and the supervision of performance venues should be continuously carried out. The focus should be on strengthening the on-site supervision of large-scale performance activities, effectively regulating the order of the performance ticketing market, compacting the main responsibilities of performance organizers, and strengthening the law enforcement and case handling of commercial performance markets.