Shanghai Government Clarifies Requirements for Cosmetics Advertising: Permissible Efficacy Claims, Content Requirements, and Prohibited Advertising Contents

On September 25, 2023, Shanghai Municipal Administration for Market Regulation (AMR) released the draft of Shanghai Cosmetics Industry Advertising Compliance Guidelines (hereafter referred to as the "Guidelines") for public consultation. ¹ On March 6, 2024, Shanghai AMR and Shanghai Municipal Medical Products Administration (MPA) released the finalized version, which became effective immediately. ²

The Guidelines applies to cosmetic manufacturers and operators who promote their cosmetics through various media and forms in Shanghai. The main contents of the Guidelines are as follows:

Chapter 1: General Provisions

Chapter 2: Establishment of a Comprehensive Management System

Chapter 3: Standardization of Efficacy Claims

Chapter 4: Standardization of Advertising Content and Forms

Chapter 5: Standardization of Live Streaming Marketing and Endorsement Activities

Chapter 6: Advertising for Products Targeting Specific Populations

Chapter 7: Supplementary Provisions

Annex: Classification Catalog of Efficacy Claims

1. Clarifying obligations of cosmetic manufacturers and operators, as well as required documents for advertising

Obligations of Cosmetic Manufacturers and Operators

Cosmetic manufacturers and operators bear legal responsibility for ensuring the authenticity and legality of the cosmetics advertisements they design, produce or publish by themselves or through consignment. They should:

Bring cosmetics advertising and publicity management into their corporate compliance management system, and ensure comprehensive oversight on the whole life cycle of advertisements from creative design to publish and public opinion handling;
Establish an advertising management system, clearly define the departments and individuals responsible for advertising management, and improve work specifications and review processes to ensure compliant cosmetics advertising. Relevant files should be retained and updated in a timely manner;
If the design, production, or publication of cosmetics advertisements is out-sourced, the manufacturers and operators still bear legal responsibility as the advertiser;
Sign a written contract for marketing and advertising through TV shopping, live streaming, internet platforms, and advertising spokespersons, in which the responsibilities of all parties are clearly defined. All parties should jointly managing the advertising compliance;
Enhance research and assessment of public opinion risks prior to releasing advertisements, and implement effective post-release monitoring and emergency response management.

Documents Required for Publishing Advertisements

Cosmetic manufacturers and operators shall have the following qualifications and certification documents before publishing cosmetics advertisements:

Business license;
Cosmetic production license (for cosmetics produced in China);
Cosmetic registration or notification certificate;
Cosmetic inspection certificate. Imported cosmetics should possess an "Entry Goods Inspection and Quarantine Certificate;"
Other certificates validating the authenticity of the advertising content.

2. Clarifying permitted efficacy claims, content requirements, and prohibited advertising contents

1. Permitted Efficacy Claims

The efficacy and safety claims in cosmetic advertisements must be consistent with the corresponding information in their product registration or notification dossiers, as well as the summarized basis for efficacy claims.

The 26 specified categories of efficacies outlined in Annex I of Cosmetic Classification Rules and Catalogs are permitted in cosmetic advertisements. On the basis of adhering to the requirements outlined in Annex I, advertisements can include supplementary explanations.

26 Permitted Efficacies

Hair dyeing, Hair perming, Freckle-removing and whitening, Sunscreen, Anti-hair loss, Acne removing, Nourishing, Repairing, Cleaning, Makeup removing, Moisturizing, Beautifying and embellishing, Perfuming, Deodorizing, Anti-wrinkle, Firming, Soothing, Oil-control, Exfoliating, Body refreshing, Hair care, Anti-hair broken, Anti-dandruff, Hair color care, Depilating, Assisting to shaving and barbering

If a cosmetic product has claims beyond the above 26 efficacies, or claims suitable for use by pregnant and lactating women, and the cosmetic product is judged to be a product with new efficacies according to Cosmetic Classification Rules and Catalogs, the enterprise is mandatory to provide a special cosmetic registration certificate when advertising the product.

2. Content Requirements

Advertising Contents	Specific Requirements
Cosmetic product name, efficacy claims, ingredient, functional ingredient, quality, use purpose, origin, price, manufacturer, validity period and commitment	These contents must be accurate and clear.
Absolute terms	Cosmetics advertisements must adhere to Enforcement Guidelines for Absolute Terms in Advertising. It is important to refrain from using absolute terms like “national level,” “highest level,” “best,” "superlative," "first," "special grade," "top grade," "crown grade," "extreme," and similar expressions.
Ingredient-related claims	In cosmetic advertisements, when claiming the efficacy of cosmetics by highlighting the efficacy of ingredients, it is crucial that the efficacy claims of the ingredients are fully relevant to the efficacy claims of the products; In cosmetic advertisements, avoid using ingredient functions to imply efficacy that the product does not actually possess or is not allowed to possess; In cosmetic advertisements, refrain from using ingredient functions to explicitly or implicitly claim disease treatment efficacy of the product; The ingredients mentioned in the advertisements shall align with the product's formulation. Unused or prohibited ingredients must not be used to promote the product; If promoting a cosmetic product solely based on its formula name, it is recommended to clearly state the formula’s ingredients or ingredient information in the advertisement; If the advertisement implies the inclusion of a specific ingredient in the product, the formula should indeed contain that ingredient.
"Zero additives", "No additives"	Cosmetic advertisements that make claims about "zero additives" or "no additives" should clearly specify the specific ingredients that are not added. Any promotional content related to the absence of certain ingredients through terms like "zero," "none," or "excluding" should be authentic. The following practices should be avoided as they may mislead consumers or disparage other products: Claiming the absence of prohibited ingredients, such as stating “no heavy metals;” Implying that the product will not cause allergies by claiming the absence of allergens or sensitizing substances; Exaggerating the harmful effects of permitted ingredients and disparaging competitors, such as advertising that silicone oil can clog pores while promoting a product as "silicone-free," and claiming that alcohol can cause skin allergies while promoting a product as "alcohol-free".
Gentle and non-irritating	To substantiate efficacy claims, the enterprise shall provide supporting evidence, such as human trials, consumer use tests, or laboratory tests that evaluate the claimed efficacy.
Suitable for sensitive skin, tear-free formula	Human trials or consumer use tests should be conducted in accordance with the Standards for Cosmetic Efficacy Claim Evaluation to ensure accurate evaluation of the claim “suitable for sensitive skin, tear-free formula.”
Data pertaining to product efficacy, performance, and sales	The advertisement shall comply with Articles 8 and 11 of the Advertising Law of the People's Republic of China
Showcasing the effects of cosmetics after use	The advertisement should be authentic and avoid misleading consumers through excessive utilization of photo retouching, editing techniques, software processing, and special shooting techniques; The advertisement should avoid the use of fabricated or edited before-and-after pictures or videos to show the effects of the product; The effect of product showcased in the advertisement should be the effect of using a single product. In cases where multiple products contribute to the overall effect, it is crucial to clearly state this in the advertisement to avoid misleading consumers.
Advertising via knowledge-based introductions, product reviews and recommendations, in-store visits, etc. on internet platforms	Adherence to the Administrative Measures on Internet Advertising is essential to ensure consumers can identify the advertisement as such. If the advertisement includes shopping links or other purchase methods, it should be explicitly marked as "advertisement."
Children’s cosmetics	Advertisements for cosmetics suitable for infants aged 0-3 years (including 3) should only promote the effects of cleaning, moisturizing, hair care, sun protection (skin area only), soothing, and refreshing; Advertisements for cosmetics suitable for children aged 3-12 years (including 12) should only promote the effects of cleaning, makeup removal, moisturizing, beautifying, perfuming, hair care, sun protection (skin area only), repairing, soothing, and refreshing; The advertisement should avoid promoting products with efficacy claims inconsistent with the intended use of children's cosmetics, such as "freckle-removing and whitening," "acne removal," "hair removal," "deodorization," "anti-dandruff," "anti-hair loss," "hair dyeing," or "hair perming;" Sunscreen cosmetics for infants and children should not be advertised as effective on body parts other than the skin; It is recommended to include warnings such as "should be used under adult supervision" in advertisements for children's cosmetics; The advertisement should avoid using terms like "gene technology" and "nanotechnology" for promotion; The advertisement should not use words like "swallowable" or images related to food, as they may confuse cosmetics with food and potentially lead children to accidentally ingest them; The "Little Golden Shield" logo (children’s cosmetics logo) should not be associated with terms like national approval or quality certification, or imply that the product has been approved by regulatory authorities or holds quality and safety certifications; In non-children's cosmetic advertisements, the advertisement should avoid expressing or implying that the product is suitable for children, and refrain from using the "Little Golden Shield" logo (Children cosmetics' logo) for promotion. The advertisement should not promote the product as "applicable to the whole population" or "for family use."

3. Prohibited Advertising Contents

The Guidelines provides clear guidance on the efficacies and contents that should not be promoted in advertisements for different cosmetics categories.

1) Efficacies that should not be promoted in advertisements

Product categories	Efficacies that should not be promoted in advertisements
Anti-hair loss products	Regulating hormonal balance, supporting hair growth, and similar terms
Acne-removing products	Regulating hormonal activity, combating (anti-, inhibit) bacterial growth, anti-inflammatory, and similar terms
Repairing products	Suitable for scars, scalds, burns, and damaged skin, among other similar conditions
Deodorizing products	Achieving deodorization by inhibiting microbial growth, and other similar terms
Anti-wrinkle products	Diminishing wrinkles, and other similar terms
Body-refreshing products	Inhibiting and improving pathological hyperhidrosis, and other similar terms
Hair care products	Repairing damaged hair, repairing split ends, and other similar terms
Beautifying and embellishing products	Promoting eyelash growth, and other similar terms

2) Contents that should not be promoted in advertisements

Prohibited contents	Examples/Notes
Content that does not comply with laws and regulations	Using product registration or notification as the evidence to advertise product quality excellence or recognized efficacy; Using inaccurate or incomplete maps of China, misusing geographic names, or displaying illegal flags, signs, logos, etc., which undermine China’s national dignity or interests; Promoting gender or color discrimination, fostering materialism, luxury, and wastefulness, etc., which disrupt social order or violate good social customs; Content containing obscenity, pornography, gambling, superstition, terror, violence, incitement to crime, excessive exposure of the human body or special body parts, or soft pornographic content; Content that insults, slanders, threatens, or invades others' privacy, which may infringe on their legitimate rights and interests; Content that poses risks to the physical and mental well-being of minors, or harms the legitimate rights and interests of women, people with disabilities, and the elderly.
Disease treatment functions, medical terms or terms that can be easily confused with drugs or medical devices	Cosmeceuticals, prescriptions, antibacterial, liposuction, slimming, and anti-inflammatory
False, exaggerated, or content that cannot be validated	Using exaggerated terms such as "full effect," "miraculous effect," and "skin rejuvenation;" Using terms, mechanisms, or concepts that lack wide acceptance in the scientific community or are fabricated, or using terms like "decoding," "digital," "intelligence," "infrared," "stem cells," "quantum," etc., that are unrelated toproduct characteristics and may not be easily understood by consumers; Fabricating false information or disparaging other legitimate products; Using fictional, forged, or unverifiable scientific research results, statistical data, survey results, abstracts, quotations, etc.
Some specific words	Promoting cosmetics as "pure natural products" or "organic products"; indirectly misleading consumers by promoting cosmetics that contain certain natural or organic ingredients as "containing pure natural ingredients" or "containing organic ingredients" in order to create the impression that the cosmetics are entirely "natural" or "organic;" Terms such as “food grade” or “edible.”