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

The Guidelines provides clear guidelines on the obligations of cosmetic manufacturers and operators and necessary documentation for cosmetic advertising. It also specifies 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 for public consultation. 1 The Guidelines is applicable to cosmetic manufacturers and operators in Shanghai, including cosmetics registrants, notifiers, production enterprises, operators, and user units, who promote their cosmetics through various media and forms. 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

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

Obligations of Cosmetic Manufacturers and Operators

Cosmetic manufacturers and operators have the legal responsibility for the authenticity and legality of their self-designed, produced, or commissioned cosmetics advertisements. They should:

  • Bring cosmetics advertising and publicity management into their corporate compliance management system, ensuring comprehensive oversight on the whole life cycle of advertisements from creative design to release and public opinion handling;

  • Establish an advertising management system, clearly defining the departments and individuals responsible for advertising management, improving work specifications and review processes to ensure compliant cosmetics advertising. Relevant files should be retained for at least three years after the advertising release terminates;

  • If the design, production, or publication of cosmetics advertisements is out sourced, the manufacturers and operators still bear legal responsibility as the advertiser;

  • For marketing and advertising through TV shopping, live streaming, internet platforms, or advertising spokespersons, a written contract must be signed, in which the responsibilities of all parties are clearly defined. All parties should jointly managing the advertising compliance.

Documents Required for Publishing Advertisements

Cosmetic manufacturers and operators need 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 advertising content.

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

The advertising and promotion of cosmetics must align with the documented efficacies submitted during the registration or notification, avoiding any exaggeration or promotion of efficacies beyond the scope of cosmetics.

1. Permitted Efficacy Claims

Cosmetics advertisements can promote the 26 specified categories of efficacies outlined in Annex I of Cosmetic Classification Rules and Catalogs. Additional explanations can be provided in advertisements as long as they adhere to the requirements stated in Annex I.

26 Allowed 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

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 that contain absolute terms such as "best," "highest level," and "national level" must adhere to Enforcement Guidelines for Absolute Terms in Advertising. It is important to refrain from using terms like "superlative," "first," "special grade," "top grade," "crown grade," "extreme," and similar expressions.

Ingredient-related claims

  • Avoid using ingredient functions to imply efficacy that the product does not actually possess or is not allowed to possess;

  • 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 the product's formula is advertised, 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;

  • When making efficacy claims based on ingredient’s efficacy, it is necessary to conduct literature research, research data analysis, or efficacy evaluation tests to confirm the claimed efficacy of the ingredient. The ingredient's efficacy should be relevant enough to the product's efficacy claims.

"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 accurately reflect the actual situation.

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”;

  • Claiming the absence of unnecessary ingredients, for example, advertising a product as "preservative-free" when preservatives are not required in the product's formula system;

  • 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," or claiming that alcohol can cause skin allergies while promoting a product as "alcohol-free";

  • Claiming the absence of ingredients that can be generated through the chemical synthesis of product ingredients.

Gentle and non-irritating

To substantiate efficacy claims, it is important to 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 and 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

It 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 on internet platforms, product reviews and recommendations, and in-store visits, etc.

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."

3. Prohibited Advertising Contents

The Guidelines provides clear guidance on the corresponding 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, support hair growth, and similar terms

Acne-removing products

Regulating hormonal activity, combat (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

Having the effect of 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

  • Advertising product quality excellence or recognized efficacy through product registration or notification;

  • Using inaccurate or incomplete maps of China, misusing geographic names, and displaying illegal flags, signs, logos, etc., which undermine 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, and 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 and 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. Additionally, avoid using terms like "decoding," "digital," "intelligence," "infrared," "stem cells," "quantum," etc., that are unrelated to product characteristics and may not be easily understood by consumers;

  • Fabricating false information or disparage other legitimate products;

  • Using Fictional, forged, or unverifiable scientific research results, statistical data, survey results, abstracts, quotations, etc.

Some specific words

  • Directly promoting cosmetics as "pure natural products", "organic products", “containing pure natural ingredients” or "containing organic ingredients" to indirectly mislead consumers into believing that the cosmetics are entirely "natural" or "organic";

  • Terms such as “food grade” or “edible.”

3. Others

Furthermore, the Guidelines clarifies the endorsement requirements and management regulations for cosmetics advertisements targeting specific groups such as pregnant women, lactating women, and children.

Cosmetics imported through cross-border e-commerce (CBEC) can be promoted in accordance with the Guidelines' provisions. It is advisable to inform consumers that these products are exclusively available overseas or on CBEC websites. Stakeholders should clearly understand the associated legal responsibilities.

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