(Source: https://pltfrm.com.cn)
Introduction
Navigating digital compliance in China requires a clear understanding of local laws and proactive measures to meet regulatory standards. This article outlines practical strategies to help brands maintain compliance while creating impactful digital campaigns.
1. Staying Updated on Regulatory Changes
1.1 Monitoring Policy Updates
China’s advertising regulations evolve frequently, with new rules targeting emerging technologies like AI or social commerce. Brands must assign dedicated teams or work with local agencies to stay informed about these changes.
1.2 Collaborating with Local Experts
Partnering with legal consultants or local compliance experts ensures timely updates on regulatory shifts. These professionals help brands interpret complex legal language and apply it effectively.
2. Ensuring Transparency in Content
2.1 Accurate Claims
Regulations require all claims in advertisements to be factual and verifiable. For instance, using scientific studies or third-party certifications enhances credibility and avoids penalties.
2.2 Disclaimer Inclusions
Industries like finance and healthcare must include mandatory disclaimers, such as risk notices or limitations of the advertised product or service. Failing to do so could result in fines or restrictions.
2.3 Avoiding Misleading Imagery
Visual representations must accurately reflect the product or service offered. Over-edited images that exaggerate product features can lead to regulatory scrutiny.
3. Compliant Data Collection and Use
3.1 Obtaining Explicit Consent
China’s Personal Information Protection Law (PIPL) requires brands to secure clear and informed consent before collecting user data. This includes informing users how their data will be used and stored.
3.2 Secure Data Storage
Data collected from Chinese users must be stored within the country. Brands should partner with local cloud service providers to ensure compliance and protect against breaches.
3.3 Minimizing Data Collection
Collect only essential data for advertising purposes. Excessive or unnecessary data collection can violate regulations and damage consumer trust.
4. Optimizing Ad Delivery for Compliance
4.1 Targeting Guidelines
Avoid overly aggressive targeting practices, such as excessive frequency or intrusive retargeting. Platforms like WeChat and Baidu offer tools to optimize targeting without breaching user privacy rules.
4.2 Content Approval
Many platforms require ads to go through pre-approval processes. Brands should factor in additional time for content review to ensure campaigns launch on schedule.
4.3 Ad Moderation
Proactively monitor ad performance and user feedback. If an ad receives negative feedback or violates community standards, remove or modify it immediately to prevent regulatory penalties.
Case Study: L’Oréal in China
L’Oréal successfully adhered to China’s stringent digital compliance standards by leveraging local expertise. The company adopted transparent data practices, ensuring all user interactions on its e-commerce platforms met PIPL requirements. L’Oréal also collaborated with Baidu to create ad campaigns that aligned with Chinese advertising regulations, emphasizing authenticity and transparency.
Conclusion
Ensuring digital compliance in China involves regular monitoring of regulatory updates, maintaining transparency in content, and adopting best practices for data protection. By prioritizing these strategies, brands can mitigate risks and maintain consumer trust.
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!