The PRC Advertisement Law Amendment: what you should know (2)
Published on October 13, 2014
In today’s commercialized society the role of advertising has become hugely important for companies.
Increased globalization means that advertisements as sales stimulants play a crucial role in delivering information cross border. With more and more foreign companies now wanting to promote their products within the Chinese market, it is more important than ever to know and understand the PRC Advertisement law.
Other major amendments
The Amendment stipulates that any organization or individual shall not send advertisements or make advertising phone calls to customers’ telephone, mobile or email accounts without the customers’ consent or request, or after the customer has expressed a wish to cease receiving such advertisements. (Article 45 of the Amendment)
Furthermore, the Amendment also strengthens the power and responsibilities of Administrations for Industry and Commerce (AIC) and its related advertising supervision departments. (Article 7 of the Amendment)
In addition to the amendment to the Advertisement Law, we also believe that the Measures for the Administration of Internet Advertising will be published shortly, and that the Measures for the Administration of Advertising Business Licenses and the Measures for the Inspection of Advertising Business Qualification will also be modified within the year. As all the former measures are issued by the State AIC, their legal hierarchies rank below the Advertisement Law, and therefore they will only be modified or issued after the Amendment is promulgated.
In general, the foundations of the Amendment are grounded in the actual development of the advertising industry. It increases punishments for any deceptive and illegal advertising which addresses the public’s major concern. It will also improve and refine the behavior of advertising publishers and operators and clarifies the legal obligations and responsibilities of advertising endorsers.
However, there is room for further improvement. For example, the term ‘advertisement’ used in this law refers to commercial advertisements but does not include public service advertisements, such as campaigns focused on environmental protection or those promoting anti-drug messages.
Currently, the soliciting of public opinion on the Amendment has already been completed and the executive meeting of the State Council discussed and passed it in June 2014. It will be submitted to the Standing Committee of the National People’s Congress after further amendments, and it is anticipated that the new law will be issued within this year.
With offices in China in Shanghai, Nanjing and Zhuhai and a network of professionals around the world, D’Andrea & Partners assists European companies in China as well as Chinese companies wishing to enter the global market through the establishment of foreign-invested enterprises or by mergers and acquisitions. The team is composed of both Chinese and European professionals, many of whom have experience of legal practice outside their home country.
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