Companies that sell their products and services in China must comply with advertising laws and not lie about their product. 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 the company must disclose the content of products that are a derivation from international standards. Compliance with these laws and regulations for product labels, marketing and sales media, point-of-sale media, other electronic forms of communication, and social media have become a complex web.
At IPO Pang, we advise clients on compliance in all forms of advertising and marketing materials. IPO Pang will assist clients when their materials do not conform with regulatory requirements by representing them in dealing with regulatory agencies. We want to ensure the best outcome for our clients when regulatory agencies who are assessing the level of non-compliance and must determine 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. 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 marketing and advertising are not only compliant, but also enhance 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.