(Source: https://pltfrm.com.cn)
Introduction
Entering China’s e-commerce market presents unique challenges for overseas brands, especially when it comes to understanding the local legal landscape. This article delves into the key laws and regulations that foreign companies must consider to ensure smooth operations.
1. E-Commerce Platform Compliance
1.1 Platform Regulations
Chinese e-commerce platforms such as Tmall, JD.com, and Pinduoduo each have their own sets of rules for foreign brands. To list products, brands must comply with platform-specific terms, including content regulations, advertising policies, and customer service standards.
1.2 Content Restrictions
The government regulates the type of content that can be posted online. Any content that violates Chinese values, such as content deemed politically sensitive, obscene, or culturally inappropriate, may be censored or result in penalties. Brands must avoid controversial topics in their marketing.
2. Intellectual Property Protection
2.1 Trademark Registration
Foreign brands must register their trademarks with the China National Intellectual Property Administration (CNIPA) to protect their intellectual property. China operates on a first-to-file basis, so it is crucial to secure trademarks early to prevent local companies from claiming rights to your brand.
2.2 Counterfeit Goods and Enforcement
Counterfeit products are a significant issue in China’s e-commerce landscape. Brands must be vigilant in monitoring their online presence and actively enforce their intellectual property rights through the Chinese legal system. Using platforms’ intellectual property protection services can help mitigate these risks.
3. Cross-Border Data and Privacy Laws
3.1 Compliance with the Personal Data Protection Law (PIPL)
China’s Personal Data Protection Law (PIPL) requires businesses to handle personal data with the utmost care. Data collected from Chinese users must be stored within China’s borders, and businesses must obtain explicit consent before collecting any data.
3.2 Data Transfer Requirements
Companies that need to transfer data outside China must ensure that these transfers comply with the country’s data protection regulations. This often involves obtaining government approval and ensuring that data is protected to Chinese standards.
4. Advertising and Marketing Regulations
4.1 Advertising Restrictions
Chinese law places strict guidelines on advertising, particularly for health products and financial services. Brands must avoid misleading claims, and advertisements should be transparent, clear, and based on verifiable information.
4.2 Celebrity Endorsements and KOL Regulations
While celebrity endorsements and influencer marketing (KOLs) are popular in China, they must adhere to advertising regulations. Brands should ensure that influencers or KOLs clearly disclose any sponsored content to avoid penalties.
Case Study: A US-Based Cosmetics Brand
A US-based cosmetics brand entering China faced challenges regarding counterfeit goods and intellectual property protection. By registering their trademark with CNIPA and working with local e-commerce platforms for enforcement, the brand was able to successfully protect its products. Additionally, the brand ensured compliance with PIPL by adapting their data collection methods to store customer information locally. This approach helped the brand establish itself successfully on Chinese platforms.
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!
