New Chinese Regulations - Impact On Marketing
Well-known streamer Xinba came under fire after the market watchdog in the southern city of Guangzhou found that he had promoted fake bird’s nests, an expensive Chinese delicacy. Authorities fined Xinba 900,000 yuan, while Kuaishou blocked him from streaming on the platform for 60 days.
In order to prevent and stop monopolistic behaviour in the platform economy; promote the sustainable and healthy development of the online economy and platform economy to operate in compliance with laws and regulations - relevant Chinese authorities have recently taken a series of measures, including live broadcast, APP personal information scope. We detail out some of these measures below.
One: Live broadcast
Recently, the State Internet Information Office and six other departments jointly issued the "Administrative Measures for Webcast Marketing" to standardize the order of the live-streaming market, and put forward specific requirements for platforms and live broadcast operators engaged in live broadcast marketing, and it will be implemented from May 25, 2021.
Key highlights of the new measures:
The live broadcast marketing platform shall establish and improve mechanisms and measures such as account number and live broadcast marketing function registration and cancellation.
The live broadcast publishers engaged in live marketing activities are subdivided into live room operators and live broadcast marketers.
The live broadcast marketing platform shall actively assist consumers in safeguarding their legitimate rights and interests and provide the necessary evidence and other support.
Live streamers and account holders must be aged over 16, with those under 18 required to obtain their guardians’ consent.
Live-streaming service providers to keep the records of their sales videos for three years.
All localities and departments should strengthen supervision and inspection, and carry out joint punishments in accordance with the law on live broadcast marketing market entities that seriously violate laws and regulations.
Two: Personal information in App
In response to the occurrence of certain apps that infringe on personal information such as illegal acquisition, over-range collection, and excessive claiming of rights, the relevant Chinese authorities have tested the personal information collection and use of some apps that are widely used by the general public such as input methods and map navigation. They found that 33 input method apps illegally collected and used personal information, including Sogou input method, Xunfei input method, Baidu input method, etc.
They tested the personal information collection and usage of some apps that are widely used by the general public, such as security management and online lending, and found 84 apps that illegally collect and use personal information, including Tencent Mobile Manager, 360 Mobile Guardian and other apps.
Relevant Chinese authorities have recently notified the list of 93 apps that violate user rights and interests. These apps have repeatedly encountered similar problems, such as forcing users to use targeted push functions, collecting personal information in violation of regulations, and using personal information in violation of regulations. Therefore, Tianya community, Damai, Tuniu Tourism, VIP training, Maimai and other companies' APPs were directly removed from the app store.
The delisting of the APP involved may cause some trouble to advertisers. If there are advertisers who plan to place advertisements on platforms such as Maimai and Tuniu, please contact us to provide you with exclusive advertising campaign alternatives.