Review of Administrative Structure & Laws- Regulations
The Advertising Industry in China
Overview of China’s Advertising Regulatory
Structure
Business Revenue of China’sAdvertising from 1990-2005
Unit: a hundred million Yuan (RMB)
25. 017
273. 27
712. 66
20051990 1995 2000
1416. 05
0
500
1000
1500
年 年 年 年
ResourceResource :: State Administration for State Administration for Industry and CommerceIndustry and Commerce
Global Advertising Market Share 2004
Others 25.8%
South Korea 1.8%
China 2.4%
Italy 2.7%
France 3.3%
Germany 5.3%
UK 5.4% J apan 10.7%
USA 42.6%
Functions of Advertising Administrative Organs
Administration, Law Execution
and Supervision
Formulate Administrative Rules
Administrative Investigation and
Disposal of Illegal Advertising
Prior Examination of
Special Advertising
Qualification Examination and
Approval of Operation of Advertising
Development Planning for
the Advertising Industry
Guide the Organizations within the Industry
Advertising Administrative Structure
……
State Administration for Industry and Commerce
Municipal AIC
AIC of Counties
AIC of Provinces and Municipalities directly under Central Government
………
……..
………
………
………
………
……
AIC of Counties AIC of Counties
Dept. of AIC
Dept. of AIC
Dept. of AIC
Dept. of AIC
Dept. of AIC
Municipal AIC
Dept. of AIC
Prior Examination of Advertising By Chinese Government Departments
MinistryOf Health
General Admin. OfPress & Publication
Propaganda Dept.Of Communist
Admin. of Radio, Film & Television
VI VII
MOA
IIII II
Food& Drug Admin.
Supervision over Advertising Market
State Administration forIndustry & Commerce
Local AIC VIV
Review Certificate on Advertising Consulting
ProductAgreement on ProductionNotice on
Preliminary examination
Advertisement Production
Idea
Certifying Documents
AdvertisementPresentation
Examination of the characters & images
Advertising Agency Media Advertiser
Comments & notice onpreliminary examination
China Advertising Association Consulting Procedure
Advertising Standards
Advertising Standards
Standards set out in the Advertisement Law of the P.R.C. and other related regulations:no pornography, superstition, terror,
hideousness or violation contentscontents discriminatory to ethnic
groups, race, religion and gender are prohibited
contents impairing physical or mental health of youth and the disabled are prohibited
Advertising Standards
tobacco advertisements are forbidden
no description of sexual activities, provocative sexual activity, or inappropriate focus on sexual characteristics
contents describing articles, and pharmaceuticals related to sexual matter are prohibited
contents in opposition to China's public interest and social stability are prohibited
Advertising Standards
contents shall be good for the people’s physical and mental health and enhance national spirits and cultures
Effective August 1, 2006, ads for pharmaceuticals, medical devices, breast enlargement, heightening and weight reduction were suspended on television.
Advertising Standards
Effective November 1, 2006, the following types of ads will not be allowed in newspapers and periodicals:medical ads related to sexual
diseases, cancer, abortion, HBV and other types of infectious diseases
ads promoting gambling skills ads introducing anesthesia types of
drug/technology that can be used in criminal activities
Advertising for Children
Advertising for Children
Advertisements of products whose target consumers are children
Advertisements that use child actors
Review Standards
Shouldn’t use child actors in advertisements for product that are not suitable for children
Use language that can be understood by children
The advertisement must not have the effect of lowering moral standards for children and must not show activities that may be dangerous for children to perform
Review Standards
Prohibits advertisements that may have a negative impact on education
Prohibits medical advertisements that use child actors, or that targets children consumers
Comparative Advertising
Comparative Advertising
Term “Comparative Advertising” is not specifically noted in the Advertising Law
Advertising Law and regulations do have related provisions
Article 12 of the Advertising Law of the P.R.C. - “An advertisement may not belittle the commodities or services of other producers and manufacturers or operators”
Comparative Advertising
Article 14 of the Unfair Competition Law of the P.R.C. - “A business operator shall not fabricate or spread false information to injure his competitors’ commercial credit or the reputation of his competitors’ commodities”
Comparative Advertising
State Administration of Industry and Commerce calls for: definite comparative subject
with verified scientific evidence non-belittlement of products or
services of competitors notedapproval of any person whose
name or image is to be used in the advertisement
Ambush Marketing
Ambush Marketing in China
No specific laws or regulations on ambush marketing.
Laws that have some applicability:Article 21 of the Advertising
Law of the PRCArticle 2 of the Law Against
Unfair Competition of the PRC
Ambush Marketing2008 Olympics
Beijing Regulations on the Intellectual Property Protection of Olympics-related IPRs
Regulations on the Protection of Olympic Symbols
Beijing 2008 Olympic Games Sponsorship Program
Regulations on the Protection of Olympic Symbols
Ambush Marketing2008 Olympics
Regulations on the Protection of Olympic Symbols“Implied commercial purpose”Item (6) of Article 5Significant amount of discretion
with AICStrict enforcement
Ambush Marketing2008 Olympics
Beijing 2008 Olympic Games Sponsorship ProgramMost comprehensive
sponsorship packageTo consolidate, enhance and
protect the rights and privileges of the sponsoring corporations
Anti-ambush marketing program of BOCOG
Richard L. Wageman
Lehman Lee & XuChinese Law Firm with a Global
Perspective
Beijing, China