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Introduction
Entering China’s massive consumer market is a game-changer for overseas brands, but one misstep in advertising compliance can lead to heavy fines, campaign bans, or even a complete market exit. With regulations evolving rapidly and enforcement becoming stricter, understanding the legal framework is no longer optional—it’s the foundation of successful localization. In this guide, we break down the core pillars of advertising compliance in China and show how leading brands stay on the right side of the law while maximizing impact.
1. Mastering the Advertising Law of the People’s Republic of China
1.1 Core Prohibitions Absolute Terms Are Off-Limits: Words like “best,” “No.1,” “100%,” or “national-level” are strictly banned unless backed by official state certification. Even implied superiority can trigger penalties. False or Misleading Content: Any claim about product efficacy, origin, or awards must be verifiable with solid evidence ready for immediate submission during audits.
1.2 Mandatory Review Processes Pre-Launch Legal Review: All advertising materials—digital banners, video ads, live-stream scripts—must undergo internal or third-party legal vetting before going live. Record-Keeping Requirements: Brands are required to retain copies of ads, contracts, and substantiation documents for at least two to three years after publication.
2. Platform-Specific Advertising Rules and Algorithms
2.1 Douyin (TikTok China) & Xiaohongshu Compliance Livestream Script Pre-Approval: High-risk categories (health supplements, beauty, finance) require script submission and platform pre-approval 24–48 hours before broadcast. Sensitive Word Filtering: Real-time AI monitoring flags hundreds of prohibited terms; brands must train KOLs and use compliance checklists to avoid instant takedown.
2.2 WeChat and Tmall Advertising Specifications H5 Ads and Mini-Programs: WeChat strictly controls jump links, QR codes, and inducement language (“scan now to get 100 RMB”). Tmall Banner & Detail Page Rules: Claims on product pages are treated as formal advertisements; any superlative or unverified data will result in listing removal.
3. Special Category Restrictions That Catch Most Overseas Brands Off-Guard
3.1 Healthcare and Functional Claims “Medical Terminology” Ban: Terms like “treat,” “cure,” “anti-inflammatory,” or “whitening” (for non-cosmetic products) are completely prohibited without NMPA blue-hat registration. Testimonial Limitations: Real consumer reviews are allowed, but staged “before-after” patient stories are treated as medical advertising and heavily penalized.
3.2 Food, Alcohol, and Infant Formula Imported Food Advertising: Origin claims (“100% imported from New Zealand”) require customs declaration proof; exaggerated nutritional claims trigger CIQ investigations. Alcohol Advertising Curfew: No alcohol ads can appear on TV or online between 7–9 PM, and all creatives must carry mandatory health warnings.
4. Celebrity Endorsement and KOL Liability Rules
4.1 Joint Liability System Shared Responsibility: Both the brand and the celebrity/KOL face fines if false claims are made, pushing brands to include strict compliance clauses in contracts. Background Due Diligence: Platforms now require brands to submit celebrity tax records and clean legal history before allowing paid partnerships. 4.2 Penalty Examples in Practice In 2023, a famous actress was fined 2.2 million RMB alongside the skincare brand for unverified “seven-day whitening” claims during a livestream.
Case Study: How a European Luxury Cosmetics Brand Avoided a 7-Figure Fine
A leading European luxury cosmetics brand planned a major Xiaohongshu + Douyin campaign claiming “clinically proven wrinkle reduction in 14 days.” Our team conducted a full compliance audit and discovered the claim violated medical terminology rules despite EU certification. We rewrote the messaging to “visibly smoother skin in 14 days—based on consumer testing of 100 women,” provided third-party lab reports, and trained 47 KOLs with pre-approved scripts. The campaign reached 180 million impressions with zero takedowns and increased Tmall flagship store sales by 340% during Double 11.
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!
