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China Regulates on Commercial Live Streaming Activities

The products/services sold through livestreaming should conform to relevant laws and regulations, and it is not allowed to sell products prohibited from online trading on livestream platforms. For products such as health food, FSMP, pesticide, veterinary drugs and etc., it is prohibited from publishing the advertisement without inspection approval in the live streaming.

On July 29th, China State Administration for Market Regulation announced the draft of Guidelines to Strengthen Online Live Streaming Marketing Activities Supervision for public comments. Any comments shall be returned before August 28th, 2020. [1]

This draft mainly stipulates the following aspects:

Legal liabilities for live streamers

When the live streaming is considered as commercial advertisements, the live streamers should bear responsibility and obligation as an advertiser or a brand spokesperson as specified in Advertising Law.

According to Advertising Law, commercial advertising refers to activities in which commodity dealers or service providers directly or indirectly introduce via certain media and in certain forms, goods or services marketed by them in China.

Prohibited products

  • Products or services banned to produce or sell by laws and regulations should not be sold in live streaming.

  • Products or services prohibited from commercial advertising should not be sold in live streaming, e.g. tobacco.

  • Products or services prohibited from online sales should not be sold in live streaming

  • For products subject to advertisement examination, advertisement should not be released in live streaming unless it is granted approval.

Illegal live streaming activities

Violations against the following seven laws in live streaming activities will be held accountable: E-commerce Law, Consumer Protection Law, Anti-unfair Competition Law, Product Quality Law, Food Safety Law, Advertising Law, Price Law.

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