Who is responsible for the texts?
Within the scope of the Chinese Advertisement Law, primary liability lies with the advertiser – meaning the party who has commissioned the advert, which is in most cases the company whose products or services are being advertised. Yet, in the event of violations, advertising agencies or service providers working on the advert, such as translation companies, can also be held liable for the published content.
In concrete terms, this means that both the company commissioning the advert and any service providers working on it have a particular duty of care for its content. This can actually only be fulfilled by an explicit approval of the advertising texts or translations by the commissioning party.
What are the potential penalties?
The penalties associated with violations of the Chinese Advertisement Law are substantial. Anyone found in contravention of Article 9(3), which lists prohibited phrasing, can be fined between RMB 200,000 and RMB 1 million (approx. EUR 25,000–130,000). In addition to this, additional sanctions are possible; including the removal of business licences for repeat offences.
In one case, a cosmetics company in Shanghai was fined more than RMB 2.7 million (equivalent to EUR 350,000) for false statements. The company had claimed that one of its shampoos cured split ends and brittle hair after five uses.
Adverts for Crest toothpaste, a Procter & Gamble brand, were also found to be untenable after they claimed that the toothpaste could lead to visibly whiter teeth after just one use. The business was fined under the Chinese Advertisement Law and paid a fine of over RMB 6 million (approx. EUR 785,000).
In a further case, the Chinese website of a large German company was taken offline for several weeks while it was reworked after the relevant authorities found that the texts contained superlatives that were not compliant with the Chinese Advertisement Law. In this instance, the authorities did not take action of their own initiative; they were reacting to a notification – from a competitor.
These examples show that the risks the Chinese Advertisement Law poses to Chinese translations are very real and can have painful consequences.