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China to tighten advertising law, require first-hand use

0 Comment(s)Print E-mail CNTV, September 12, 2014
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With retail consumption targeted as an engine of growth for the economy, lawmakers are placing more scrutiny on products. Now, they say celebrities need to test out the products they represent, before endorsing their sale.

An actor endorsing excavators. A male singer. Selling female sanitary products. These are just some of the advertisements Chinese consumers are questioning.

"I don't trust the stars' advertisements. Because they don't use those things themselves. They get money to do the advertisement. That's their main goal," Software engineer Simon Yan said.

"When I see a celebrity endorsement, I consider it carefully before trusting it. But if it's a celebrity I really trust, I may consider buying the product," Retail buyer Li Jingxiu said.

Last month, a new amendment was submitted on China's advertising law to the National People's Congress

It says an endorser should have a first-hand experience using the product. And recommend it based on facts.

It adds that if they knowingly endorse sub-standard products or services, their earnings could be confiscated. They could also be fined double the amount they would have made.

China wants its economy to depend on domestic consumption. And it's building thousands of shopping malls like this across the country. But from food safety scares to phony advertisements, building public trust remains a major hurdle - something lawmakers are now trying to overcome."

But marketing Professor, Xu Jing, says the suggested change to the law isn't enough to reassure consumers.

"In my opinion, it doesn't really provide much direct benefit to consumers, because even if celebrities have used the brand, it doesn't really guarentee it's a great product. It doesn't guarentee its a safe product, right," Prof. Xu Jing, deputy chair of Marketing Dept., Peking Univ., said.

She also says that it may be hard to enforce.

"How do you define the 'usage' or the 'experience' with a brand? Maybe you used a car once, say for example someone picked you from the airport. You used some model of car. So you 'used' the brand. but that was just once," Prof. Xu said.

Without safety guarentees, it's unlikely ads can convince an increasingly wary Chinese public to buy more products. Even if a famous face has used them.

 

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