(Source: https://pltfrm.com.cn)
Introduction
Influencer marketing has become a core growth engine in China’s digital ecosystem. But as regulatory oversight increases, overseas brands must tread carefully when working with KOLs and content creators. A single non-compliant campaign can lead to takedowns, fines, or platform bans. This article outlines the critical legal risks—and how to mitigate them—when partnering with influencers in China.
1. Understand Platform-Specific Guidelines for Influencer Content
1.1 Differing Disclosure Standards:
Each Chinese platform has its own disclosure rules. For example, Douyin requires clear visual indicators of sponsorship, while Xiaohongshu emphasizes transparency in tone and caption.
1.2 Automated Flagging Systems:
AI moderation scans for content that resembles unmarked advertising. Posts without compliance labels may be shadowbanned or receive lower algorithmic priority.
2. Be Aware of Legal Liability for Brand-Backed Misconduct
2.1 Joint Responsibility Doctrine:
Under Chinese law, both the brand and influencer are liable for misleading or illegal claims. This includes fake testimonials, unapproved health product endorsements, and pricing deception.
2.2 Example Offenses and Penalties:
Cases of unverified efficacy claims or over-promoting restricted categories (like infant formula or medical devices) can lead to bans or public blacklisting by regulators.
3. Review Influencer Profiles for Licensing and Past Compliance
3.1 Check for Business Registration:
Influencers must operate under a registered business entity (e.g., 个体工商户) to legally earn revenue from brand partnerships. Always request a copy of the license before finalizing deals.
3.2 Research Reputation and Past Campaigns:
Use tools like Newrank, CBNData, or third-party audits to assess whether an influencer has prior violations or has had content removed due to regulatory breaches.
4. Sign Detailed Contracts With Legal Safeguards
4.1 Include Disclosure, IP, and Termination Clauses:
Contracts should clearly assign responsibility for labeling sponsorships, IP ownership of content, and termination rights if the influencer violates laws or platform rules.
4.2 Local Language Requirement:
Contracts must be drafted in Chinese (or dual-language) to be enforceable in Chinese courts. This is especially important for dispute resolution and penalty enforcement.
5. Stay Updated on Regulatory Developments
5.1 Monitoring SAMR and CAC Circulars:
New guidelines are frequently issued, especially around livestreaming and short video promotions. Subscribe to updates from the State Administration for Market Regulation (SAMR) and Cyberspace Administration of China (CAC).
5.2 Leverage Local Legal Advisors:
Work with a China-based marketing law specialist to pre-audit influencer campaigns, especially during peak sales periods like Double 11 or 618.
Case Study: EU Lifestyle Brand Cancels Campaign to Avoid Regulatory Fallout
An EU-based fashion accessories brand planned a livestream launch on Douyin. A legal audit revealed the KOL had previously violated ad disclosure laws and was under platform scrutiny. The brand halted the campaign, avoiding potential account penalties and reputational risk. Instead, it pivoted to working with a vetted mid-tier influencer agency that complied with new livestreaming e-commerce laws.
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!
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