China‘s Network Live-streaming Marketing Supervision is Coming Soon
【Posted on: 2020 September】
Livestream selling is all the rage in China, but recently Chinese regulators are preparing to impose new regulations on the booming use of live streaming. It aims to form a long-term mechanism to rectify abuses such as sales of counterfeit products, false advertising and fake traffic volume.
Most significantly, the regulation clarifies anchor’s legal responsibilities, mean that video bloggers and anchors will be considered businesses in and of themselves. This will substantially alter their legal liabilities, as they will have to obey a broader e-commerce law that was implemented last year. That law requires, for example, that businesses verify their identities before they start livestreaming.
The most controversial issue is whether these anchors should be defined as advertising endorsers. This would make them subject to additional regulations including prohibitions aginst the use of certain terms, such as “best” or “top”, when promoting products. This can be the biggest headache for anchor, as many people are used to using exaggerated words to describe what they are selling, which may cause misunderstanding for viewers, but it is also a way to attract attention.
Although the changes represent potential risk for brands, representatives from e-commerce platforms and influencer agencies welcome the moves because bring healthy competition into the market will also bring long-term benefits to the development of the industry.
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