China Issues Measures for the Administration of Internet Advertising
The State Administration for Market Regulations issued the Measures for the Administration of Internet Advertising (“Measures”) on 25 February 2023 for regulating Internet advertising activities on the basis of the Advertising Law of the PRC (“Advertising Law”) and the E-Commerce Law of the PRC. The Measures becomes effective on 1 May 2023 and replaces the Interim Measures for the Administration of Internet Advertising. The Measures mainly include the following:
1.???The one-click closing rule should be ensured for closing pop-up ads, app open ads and other internet ads. In addition, advertisements that can be closed only after the countdown or advertisements that continue to pop up after being closed during the review of the same document will be considered as violating this rule and should be prohibited. The penalty for violating this rule will be subjected to the Advertising Law, in which the fine ranges from RMB 5,000 to 30,000.
2.???Advertisers that publish advertisements in person should create and update the advertisement record promptly. The advertisement record should be kept for no less than three years from the end of the publication of the ads. The recording obligation and minimum recording period are new to the advertisers since this obligation only belonged to the advertising agents and publishers as stipulated in the Advertising Law. The maximum fine for violating this rule is RMB 50,000.
3.???Advertisements ranked by auctions should indicate "advertisement" to distinguish them from general search results and should not be inserted among the results of a search for a government service website, official account or Internet application program.
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4.???Internet ads should not be sent to users’ transportation, navigation system or smart home appliance if the user clearly states his/her refusal or no user's consent has been obtained. The penalty for violating this rule will be subjected to the Advertising Law, in which the fine ranges from RMB 5,000 to 30,000.
Advertisers should check the content related to the ads to which the link leads when publishing an Internet advertisement containing a link. For example, if a company’s webpage contains a link to a third-party webpage for publicizing the good quality of its product or service, the company, as the advertiser, must check the content related to its products or service on the third-party webpage. The maximum fine for violating this rule is RMB 50,000.