Endorsements offer brands a perfect opportunity to engage customers and boost sales of their products. On the other hand, the opportunity to be the face of a brand often tempts celebrities and influencers to endorse a product. However, straying away from the facts or making unnecessary claims may invite fines from the advertising regulators.?
Endorsements should always adhere to the advertising laws of the respective countries. Brands should be aware of the laws so that they can craft appropriate messages, while endorsers must be able to understand whether the claim, they are about to make of the product is allowed by the regulators.?
In China, the State Administration for Market Regulation has stressed on the importance of local market regulators needing to supervise the culture and entertainment industry and strengthening oversight of celebrity endorsements. But what are the points that brands and endorsers should be aware of while activating endorsement campaigns in China? Let's take a look:?
While planning to activate an endorsement campaign in China, brands can follow this checklist for a hassle-free campaign:?
- Is the endorser qualified (aged ten years or more; no administrative penalties for false advertisement in the past three years and not involved in illegal or improper public behavior)?
- Has the endorser actually used the product??
- Has the agency obtained authorization?from the endorser??
- Is there any potential agent dispute between the endorser and the agency??
- Does the endorsement agreement address the endorser’s rights and interests??
- Are the endorser’s testimonials in compliance with the advertising laws??
Before committing to endorse a product, endorsers can follow the following checklists to ensure a smooth endorsement campaign:?
- Is the product or service they are asked to endorse subject to any legal restriction??
- Does the brand have any negative associations??
- What is the reputation of the brand among the general public??
- Does the endorsement agreement address the endorser’s rights and interests??
- Is the endorser comfortable providing the testimonials after using the product??
- Has the brand obtained all qualifications for its business and whether the signing party has obtained authorization from the brand to sign the agreement??
Legal Requirements for Advertisements in China?
Here are the advertising regulations that all brands and endorsers must follow while planning an endorsement ad campaign in China:?
- No advertisement shall contain any false or misleading information, and shall not deceive or mislead consumers;?
- No advertisement shall assert any therapeutic functions for products and using medical wordings or wordings that may easily cause confusion between the products promoted and pharmaceuticals and medical devices, except advertisements for pharmaceuticals, medical devices and medical treatments;?
- Endorsers shall make endorsements or testimonials for products or services based on facts and in compliance with the laws and regulations, and shall not make endorsements or testimonials for products or services that they have never used. If an endorser knows or should have known that the advertisement is false but still makes the endorsement or testimonial, then the market regulator shall confiscate such endorser’s illegal income and impose a fine of up to double the amount of such illegal income;?
- Any individual or organization that has received an administrative penalty for making a false endorsement or testimonial shall not act as an advertisement endorser for three years;?
- Minors under the age of ten may not serve as advertising endorsers;?
- Advertisements for medical treatment, pharmaceuticals, medical devices, or healthcare food shall not use advertisement endorsers;?
- Advertisements for agricultural pesticides, veterinary medicines, feed and feed additives, crop seeds, forest seeds, grass seeds, breeding animals, aquatic fingerlings, planting, and breeding shall not use the name or image of research institutes, academic institutes, technology promotion institutes, industry associations or professionals in order to recommend or assert a product’s effectiveness;?
- Advertisements for education, training, or a product/service with anticipated investment returns, shall not use the name or image of research institutes, academic institutes, educational institutes, industry associations, professionals or beneficiaries in order to recommend or try to prove efficacy.?
Celebrity endorsements boast one of the greatest potentials in driving sales, however, being ignorant of the legal requirements will harm the endorser and the brand. With China’s advertising and cultural authorities strengthening enforcement around celebrity endorsements, it is high time that both brands and endorsers stay updated and advised on the country’s advertising laws and regulations.?
Plan your next ad campaign in China, across a variety of media, complete with legal support for advertising through Masscom Global. Visit www.masscomglobal.com or send your enquiry to [email protected].
