On August 8, 2022, Shanghai Minhang District Administration for Market Regulation (AMR) released an administrative penalty, punishing a cosmetic company that claimed its essence had anti-aging (抗衰老) efficacy in its Tmall flagship store. 1
Screenshot of the Decision on Administrative Penalty of Minhang AMR
Based on relevant evidence, Minhang AMR determined that the “anti-aging” advertising claim of the product was inconsistent with actual efficacy. As an advertiser, the company used such claims in e-commerce platform advertisements, directly affecting consumers' purchase judgment and willingness. This behavior violated Article 4 of the Advertising Law of the People’s Republic of China (Advertising Law) and constituted the conduct of false advertising under Article 28 of Advertising Law. Minhang AMR ordered the company to stop publishing the advertisement and eliminate the influence, and fined the company 4,000 yuan.
Article 4 of Advertising Law
Advertisements shall not have any false or misleading content and shall not defraud or mislead consumers. The advertiser shall be responsible for the authenticity of the advertising content.
Article 28 of Advertising Law
Any advertisement that defrauds or misleads consumers with any false or misleading content constitutes a false advertisement. An advertisement that falls under any of the following circumstances shall be a false advertisement:
(II) Regarding the good's performance, efficacy, origin, use, quality, specification, ingredient, price, producer, expiration date, sales status, and honors received, etc., or the service's content, provider, form, quality, price, sales status, and honors received, etc., or any commitments made on the good or service, there is any inconsistency with the actual situation, which has a substantial impact on purchases.
(Circumstances I, III, IV, V are omitted.)