Online ad market to face stricter rules
Print Edition
CHINA yesterday unveiled new rules for online advertising, which will require content to be clearly stated, impose strict scrutiny for certain advertisements and lay out penalties for violations.
The new rules, to be effective from September 1, stipulate that online advertising should clearly indicate the nature of the advertised content, said a statement on the website of the State Administration for Industry and Commerce.
Advertising for medical services, drugs, medical devices and formula food for special medical use should come under the scrutiny of advertising watchdogs before they are allowed to advertise.
Paid search results and natural results should be clearly demarcated, and online platforms should not tempt users into clicking on these paid links or content.
Those who fail to do so or did not provide proper means for users to shut off advertising content could face a penalty between 5,000 yuan (US$748) and 30,000 yuan from industrial and commercial administrative authorities.
The new rules cover advertising on all online platforms such as e-commerce sites, search engines sand social networks industry-wide. Sun Jianbo, chief strategist at Galaxy Securities, said the new rules would mean that paid search services now officially fall under online advertising, and the move would create a more transparent business environment for major players such as search engine Baidu.
Ad agencies, online platforms and advertising publishers need to sign a written contract for online ads, and advertisers should give genuine paperwork or references to verify their corporate identities.
Online platforms should also verify and authenticate the paperwork and should not produce or publish ads that did not match the actual content.
Advertisers who know about illegal advertisement contents should delete them or stop their display.
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