(Source: https://pltfrm.com.cn)
Introduction
In today’s hyper-connected world, digital advertising in China offers overseas brands unprecedented opportunities to reach billions of consumers, but it comes with a complex web of rules designed to ensure transparency, fairness, and consumer protection. Understanding these requirements is essential for avoiding costly penalties and building lasting trust. This article breaks down the core compliance pillars that every overseas brand must master to launch effective and lawful campaigns on platforms like WeChat, Douyin, and Xiaohongshu.
1. Clearly Identifying Advertisements for Transparency
1.1 Mandatory Labeling Requirements Explicit Marking: All paid promotions, including native content, KOL posts, and algorithm-driven ads, must be prominently labeled as “广告” (advertisement) to distinguish them from organic content. This prevents misleading consumers and aligns with the 2023 Measures for the Administration of Internet Advertising. Practical Implementation: Use visible tags, watermarks, or dedicated disclosure sections in videos and livestreams. Platforms now enforce automatic detection, so incomplete labeling can trigger immediate removal.
1.2 One-Click Close and User Experience Rules Pop-up and Open-Screen Ads: Every pop-up or full-screen ad must feature an obvious close button that allows instant dismissal without tricks or delays. Deceptive tactics like fake system alerts are strictly prohibited. Consumer Protection Focus: These rules stem from the need to respect user autonomy; violations not only lead to fines but also damage brand reputation in a market where trust is paramount.
2. Prohibited Content and Truthful Claims
2.1 Avoiding Absolute or Superlative Language No Extreme Terms: Phrases like “best,” “number one,” “100% effective,” or “national top” are banned unless backed by official state certifications. This applies across all digital formats. Evidence-Based Claims: Any performance or benefit statement requires verifiable proof retained in advertising archives for at least three years.
2.2 Sector-Specific Restrictions Sensitive Categories: Healthcare, cosmetics, and financial products face extra scrutiny—no medical-treatment claims for health foods, no guarantees in investment ads, and strict rules on endorsements for restricted items. Cultural Sensitivity: Ads must not harm national dignity, promote superstition, or discriminate; overseas brands should conduct thorough cultural reviews to avoid unintended offense.
3. Data Privacy and Personalized Advertising Compliance
3.1 Consent Under PIPL and Algorithm Rules Explicit User Consent: Personalized ads using behavioral data require separate, informed consent; users must have easy opt-out options for targeted recommendations. Impact of PIPL: The Personal Information Protection Law mandates minimal data collection and transparency in how profiles are built for ad targeting.
3.2 Archiving and Audit Readiness Record-Keeping Obligations: Brands and agencies must maintain detailed archives of all ads, including targeting parameters, for three years and cooperate fully with SAMR inspections. Risk Mitigation: Regular internal audits and third-party compliance checks help overseas brands stay ahead of evolving enforcement trends.
4. Livestreaming and Influencer Marketing Guidelines
4.1 Disclosure in Real-Time Promotions Livestream Labeling: All product promotions during live sessions are classified as advertising and require real-time “广告” markers plus clear disclosure of paid partnerships. Influencer Accountability: KOLs must base endorsements on actual experience; both influencers and brands share liability for false claims.
4.2 Platform Responsibility and Oversight Co-Regulation Model: Platforms like Douyin and Xiaohongshu must pre-screen high-risk content, giving brands an extra layer of protection when partnering with vetted creators.
Case Study: A Global Cosmetics Brand’s Successful Douyin Campaign
A leading European cosmetics brand partnered with mid-tier beauty KOLs on Douyin for a skincare launch. By labeling every sponsored video as “广告,” obtaining explicit user consent for retargeting, avoiding superlatives (focusing instead on “clinically tested ingredients”), and archiving all materials, the campaign generated millions in sales without regulatory issues. The brand’s proactive compliance training for influencers ensured authentic reviews, boosting consumer trust and earning praise from platform moderators.
Conclusion
Navigating China’s digital advertising ecosystem demands rigorous compliance, cultural intelligence, and strategic partnerships. Overseas brands that prioritize transparency, data ethics, and truthful messaging not only avoid penalties but also build stronger, more loyal audiences in one of the world’s most dynamic markets.
PLTFRM is an international brand consulting agency that works with companies such as Red, TikTok, Tmall, Baidu, and other well-known Chinese internet e-commerce platforms. We have been working with Chile Cherries for many years, reaching Chinese consumers in depth through different platforms and realizing that Chile Cherries’ exports in China account for 97% of the total exports in Asia. Contact us, and we will help you find the best China e-commerce platform for you. Search PLTFRM for a free consultation!
