Companies that sell their products and services in China must comply with truth in advertising laws. Companies that fail to comply with the law will be subject to both civil liability to the “unsuspecting consumer” of up to 10 times the value of the false claim in addition to a civil fine of up to 500,000 RMB. Labeling laws require disclosure of content of products that are a derivation of international standards. Given this, compliance with these laws and regulations on product labels, in marketing and sales media, in point-of-sale media, in other electronic forms of communication and social media have become a complex web of laws to sift through.
At IPO Pang, we advise clients on compliance in all forms of advertising and marketing materials and on occasion, when their materials do not conform with regulatory requirements, represent them in dealing with regulatory agencies who are assessing the situation and deciding on the level of fine appropriate for the infraction.
Advertising and marketing messages and the way they are conveyed is not a science but an art, and this “art” is further complicated by cultural and language differences. Often what is written in English may have a different message in Chinese. At IPO Pang, we have the expertise to identify and modify the message to ensure the client’s message is not only compliant, but also enhances the sales message rather than diluting it. Knowledge of the law, the regulations, and local practices is crucial to offering practical advice and solutions. We have a team of lawyers, consultants and regulatory experts who can opine on the advertising materials to ensure they meet all legal requirements.