The State Administration for Market Regulation ("SAMR") has recently issued the Circular on Launching a Deepen Program to Rectify Internet Advertisements (the "Circular").

The Circular states that the program will focus on internet mediums that have orientation or politically sensitive, flattering issues and with powerful social influences and extensive coverage, including the portals, search engines, e-commerce platforms, mobile client terminals, and new media accounts, and intensively rectify five categories of false and unlawful internet advertisements that cause an adverse social impact, arouse strong concerns among the general public, and harm the personal and property safety of the masses, to be specific, including "false and illegal internet advertisements of medical treatment, drugs and medical devices, dietary supplements, real estate and investment and wealth management that jeopardize the personal safety or the physical health of the masses".

The typical cases go as follows.

1. False and illegal internet advertisements on medical treatment, drugs, medical devices, dietary supplements and etc., which have not been examined but published.
2. False and illegal internet advertisements on medical treatment, drugs, medical devices and dietary supplements with contents such as recommendation and effect certification by the spokesperson.
3. False and illegal internet advertisements which exaggerate the effect of products and claim for food and health food with disease prevention and treatment functions.
4. False and illegal internet advertisements of financial investments, investment attraction and collections which make guaranteed promises on future effect, earnings and other related situations, express or imply capital-guaranteed, risk-free or earnings-guaranteed.
5. Real estate advertisements promising appreciation or return on investment or with transportation, commerce, cultural and educational facilities information.
6. False and illegal internet advertisements that disturb the public order and good social customs and cause adverse social effects.
7. Other false and illegal Internet advertisements that arouse strong concerns among the general public.

The company should have a self check on the advertisement and to avoid the potential legal risk.

If you have any question, please contact me.

Mr. Mike Chang

TEL: 0086-21-68868321 / FAX: 0086-21-68868021