---
title: "First Case Filed Under New Advertising Law Featuring Chen Baoguo; Personal WeChat Reposts Also Liable"
description: "The newly revised Advertising Law of the People's Republic of China, effective from yesterday, has shaken the advertising industry with its strictest-ever penalties. Businesses have been pulling ads overnight and copywriters are scrambling to revise content, as extreme superlatives are banned, prompting some to use phrases like 'so good it violates the advertising law,' which authorities say may also be illegal if used in ads."
author: "New Distribution"
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published: "2015-09-06"
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# First Case Filed Under New Advertising Law Featuring Chen Baoguo; Personal WeChat Reposts Also Liable

> The newly revised Advertising Law of the People's Republic of China, effective from yesterday, has shaken the advertising industry with its strictest-ever penalties. Businesses have been pulling ads overnight and copywriters are scrambling to revise content, as extreme superlatives are banned, prompting some to use phrases like 'so good it violates the advertising law,' which authorities say may also be illegal if used in ads.

Summary:
The newly revised Advertising Law of the People's Republic of China came into effect yesterday, and its penalties, dubbed the 'strictest in history,' have sent shockwaves through the advertising industry. Cases of businesses pulling ads overnight and copywriters revising copy are everywhere. Various extreme superlatives have been banned, forcing copywriters to use phrases like 'so good it violates the advertising law' as substitutes. In response, the Municipal Administration for Industry and Commerce stated that using such phrases in advertisements may also be illegal.

## 1. First Illegal Ad Case Filed by Municipal Administration
Yesterday, due to a large number of in-store ads for Hongmao medicinal liquor endorsed by celebrities such as Chen Baoguo, the Shanghai Administration for Industry and Commerce filed a case against Shanghai Taiantang Large Pharmacy Chain Co., Ltd. Hengshan Road branch. This is the first case filed by Shanghai's industry and commerce authorities for suspected illegal advertising since the new Advertising Law took effect.

A reporter at Taiantang Pharmacy saw ads for Hongmao medicinal liquor on its glass doors and elsewhere, and this medicinal liquor is classified as a drug. According to Article 16 of the new Advertising Law, medical, pharmaceutical, and medical device advertisements must not use advertising endorsers for recommendations or proof. Violators will be ordered by the administrative authority for industry and commerce to stop publishing the ad, and the advertiser will be ordered to eliminate the impact within the relevant scope, with a fine of 1 to 3 times the advertising costs; if the advertising costs cannot be calculated or are clearly low, a fine of 100,000 to 200,000 yuan will be imposed.

## 2. Illegal Ads on Nanjing Road Removed
On the 20th of last month, a reporter accompanied law enforcement officers from the Municipal Administration for Industry and Commerce on a pre-warning inspection of Nanjing Road Pedestrian Street and found that many shops and pharmacies had billboards violating the new law.

At Huamei Pharmacy, an ad for 'Hongmao medicinal liquor' was posted at the entrance, with Chen Baoguo as the endorser; on the second floor of First Medicine Store, a Siemens hearing aid ad featured Sun Chun as the endorser; at Baodaxiang Youth and Children's Shopping Center, a children's clothing store on the second floor had an ad featuring child star Tiantian, who became famous from 'Dad, Where Are We Going?' as the endorser. Under the new Advertising Law, these endorsements are considered illegal.

A reporter revisited these places yesterday and found that the ads previously suspected of violating the new law had been removed.

Law enforcement officers from the Municipal Administration stated that as long as businesses removed these suspected illegal ads before the new law took effect on September 1, they would not be penalized.

## 3. Companies Work Overnight to Revise Copy to Avoid Trouble
The implementation of the new law has also brought a whirlwind to the advertising industry, with September 1 seen as a watershed. It is reported that a large number of ad copies have been scrapped and rewritten because they conflict with the new law, and many copywriters have racked their brains to revise copy to the point of exhaustion.

A copywriter at an internet company said they were revising copy late into the night on August 31. Because the new law strictly prohibits the use of extreme superlatives such as 'first,' 'largest,' 'best,' 'first in the industry,' 'exclusive,' and 'leading nationwide,' copywriters face significant challenges, and few companies have avoided revising their copy. 'Yesterday (August 31), a large number of copywriters were working overtime to revise copy, and some even stayed up all night.' To avoid 'stepping on mines,' some copywriters jokingly suggested using 'violates the advertising law' to describe something good. For example, 'the best phone in the Eastern Hemisphere' could be changed to 'the phone is so good it violates the advertising law, the design is so handsome it has no friends, and the price is so low it's not allowed to be mentioned.'

[Related News]
'So good it violates the advertising law' used in ads may also be illegal

This advertising law, hailed as the 'strictest in history,' stipulates that advertisements must not use extreme terms such as 'national level,' 'highest level,' or 'best,' and increases the penalties, raising the previous 'refund and triple compensation' to a fine of 200,000 to 1 million yuan upon discovery, with severe cases leading to direct closure of the store.

The rule that using extreme terms results in a fine starting at 200,000 yuan has also sparked many jokes, with many copywriters creating phrases like 'so good it violates the advertising law.' In response, Ying Jun, Director of the Advertising Division of the Shanghai Administration for Industry and Commerce, believes that the Advertising Law does not prohibit advertising sales performance, but 'so good it violates the advertising law' is itself an untrue, unclear, and ambiguous expression. If such copy is published as images in WeChat Moments or as jokes by copywriters, it is fine; but if it is published as an advertisement, it may violate the Advertising Law. The Advertising Law has been in effect for 20 years, and many companies and media have become accustomed to advertising under the old law. They should quickly understand the changes in the new Advertising Law, and the industry and commerce authorities will also increase training and publicity efforts.

[These Promotions Are Suspected of Being Illegal]
'Drive 20 minutes to the airport' cannot be used

The new Advertising Law also imposes restrictions on real estate advertisements. The regulations clearly stipulate that housing information must be truthful, the area must be marked as building area or interior area, and must not contain promises of appreciation or investment returns, nor misleading publicity about planned or under-construction transportation, commercial, cultural, educational facilities, or other government conditions. Phrases like 'drive 20 minutes to reach the airport' cannot be used, and many companies that advertise for real estate are also uneasy because they cannot say that the property is close to the subway or schools. An advertising company specializing in real estate ads gave an example: 'Don't look at the ads; just take subway line X to see the property directly. Your legs won't break.'

Child stars frequently appear to promote brands

With the implementation of the new law, celebrities of all sizes have been greatly impacted, and endorsements are no longer as unrestricted as before.

Previously, celebrity ads were everywhere, and child stars frequently appeared. For example, if you wanted to travel, little Kimi would take out his phone to teach you to use a travel website; if you got dirty, Wang Shiling would prepare a certain shower gel for you; when choosing children's clothing, Tiantian would also recommend a certain brand... Now, the new Advertising Law stipulates that minors under 10 years old cannot be endorsers. This is partly to protect the physical and mental health of minors, and partly because child stars lack the ability to independently judge things. In response, netizens joked, 'Kids, you can finally go study hard!'

Male celebrities cannot endorse female products

Male celebrities like Wang Dongcheng, Luo Zhixiang, and Chen Bolin, who endorsed female products such as sanitary pads and tampons, were jokingly called 'auncles' (a play on 'aunt' for menstruation). After the implementation of the new law, these 'auncles' will no longer be seen. This is because the new law stipulates that advertising endorsers must not endorse products they have not used or services they have not received.

At the same time, the new law also imposes legal liability on celebrity endorsements, stating that celebrities cannot just take money without taking responsibility. If a celebrity endorses a false advertisement, they bear joint and several liability.

Mobile apps also included in advertising regulation

The implementation of the new law also imposes restrictions on ordinary citizens, as reposting advertisements on platforms like WeChat Moments and Weibo is also regulated.

The new Advertising Law stipulates that whether an entity or an individual, whether or not they receive payment, as long as they directly or indirectly introduce the goods or services they are promoting, it constitutes advertising behavior. If the published advertising content is false and deceives or misleads consumers, the publisher of the advertisement can become the target of claims.

'Friends who received WeChat red packets, please help me repost this ad.' Ms. Zhang often sees messages in WeChat groups asking for reposts in exchange for red packets, and after grabbing a red packet, she would repost it in her Moments. But starting from September 1, helping to repost ads requires 'thinking twice,' because the new law clearly stipulates that individuals publishing ads on self-media also bear corresponding legal responsibilities. This includes self-media platforms like Weibo and WeChat, websites, and even mobile apps, all of which are included in the scope of internet advertising regulation. If the reposted ad is illegal, the publisher also bears relevant responsibilities.

-END-

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