Printing and Distributing the Implementation Opinions on Ceasing the Advertisement Business of Advertisers, Advertising Agents and Advertisement Publishers ( the “Notice”).

This Notice supplements Articles 37, 39, and 41 of the Advertisement Law of the People’s Republic of China  (the “Advertisement Law”). This Notice intends to establish and perfect the advertising market and strengthen the supervision and administration of advertisers, advertising agents and advertisement publishers.

The Notice emphasizes the following three issues:

  • First, the Notice provides suspension of certain advertisement business which includes advertisers’ advertisement publishing of some commodities and services; advertising agents’ advertisement designing, producing, and serving as agents of some or all commodities and services; advertisement publishers’ advertisement publishing business; and the cancellation of qualifications of advertisement publishing for the advertising agents and advertisement publishers.
  • Second, the Notice clarifies several specific situations that the advertisement business could be ceased, including: publishing false and deceiving advertisement which deceives or misleads consumers, resulting in i) illegally gaining more than RMB50,000 yuan; ii) causes direct damage to consumers’ economic interest up to RMB 20,000 yuan or more; iii) causes serious results such as infringement or damage to the human body or property; or iv) causes serious damage to republic interests or market competition system; publishing advertisement in violation of the provisions of Article 7 (2) of the Advertisement Law and resulting in serious damages to public interests or disturbing public order or market competition order; publishing advertisement in violation of the Article 14 to 17 and Article 19 of the Advertisement Law, causing serious infringement or damage to human body and property, violating the same Article of 37, 39, and 41of the Advertisement Law in one year after being punished according to the said provisions.
  • Finally, the Notice prescribes the suspension period which is no more than six months, and also related procedures that should be followed when industry and commerce administrative authorities deal with the suspension