[Direct answer]In the Beijing area, false advertising in live-streaming sales may result in administrative, civil, and even criminal liabilities. According to Article 8 of the Anti-Unfair Competition Law of the People's Republic of China (amended in 2019 and implemented on April 23, 2019), operators are prohibited from making false or misleading commercial claims about the performance, functions, quality, sales status, user reviews, or awards of their products, in order to deceive or mislead consumers. Article 20 stipulates that those who violate this provision by making false or misleading commercial claims shall be ordered by the supervision and inspection departments to cease their illegal activities and be fined not less than 200,000 yuan but not more than 1 million yuan; if the circumstances are serious, they shall be fined not less than 1 million yuan but not more than 2 million yuan, and their business licenses may be revoked. If it constitutes false advertising, they shall be punished in accordance with the Advertising Law of the People's Republic of China (amended in 2021), which stipulates fines of not less than three times but not more than five times the advertising costs and other responsibilities in Article 55. Live-streaming marketers and platforms that fail to fulfill their responsibilities may also bear corresponding liabilities. Aggrieved consumers may claim three times compensation in accordance with Article 55 of the Consumer Rights and Interests Protection Law of the People's Republic of China (amended in 2013 and implemented on March 15, 2014). Serious false advertising may also constitute the crime of false advertising. Therefore, operators, streamers, and platforms should all strengthen the compliance of their promotional language.

I. Problem background and typical scenarios

The rapid development of live-stream e-commerce has led to an increase in the number of cases of false advertising. Typical examples include: streamers exaggerating the efficacy of products, misleading consumers with false original prices and actual discounts, fabricating sales and user reviews, and passing off ordinary products as well-known brands, as well as making exaggerated claims about health care or medical devices. The parties involved include merchants, streamers, MCN agencies, and live-stream platforms, making the division of responsibilities quite complex. The live-stream e-commerce industry is active in Beijing, and regulatory authorities have taken strong enforcement actions. Once operators and streamers are found guilty of false advertising, they may face fines, license revocation, and even criminal prosecution, highlighting the urgent need to strengthen compliance awareness.

II. Key points of contention

First, whether the promotional content constitutes false or misleading information, and how to determine the applicable standards. Second, who should bear responsibility—the merchants, live streamers, MCN agencies, or platforms—and what responsibilities each should assume. Third, how to determine the types and severity of administrative penalties, and whether the Advertising Law applies. Fourth, whether consumers who have been harmed can claim triple compensation, and how to determine whether it constitutes fraud. Fifth, whether serious cases constitute the crime of false advertising. Sixth, the management obligations and liability boundaries of platforms regarding the content of live stream rooms. Clarifying these issues is essential to comprehensively assessing legal risks.

III. Professional analysis by Henglue Lawyers

Based on the practical experience of Henglu Law Firm in handling intellectual property and corporate compliance cases, the following three aspects should be taken into account. First, behavioral characterization: false advertising is subject to the Anti-Unfair Competition Law, and it may also constitute false advertising under the Advertising Law. When the two laws overlap, the more severe provisions shall apply. The key judgment lies in whether the content of the advertisement is false or likely to mislead consumers, and whether it affects consumers' decision-making. Second, multi-party responsibility: merchants, as advertisers, bear the main responsibility; streamers, depending on their identity, may constitute advertising operators, publishers, or advertising endorsers, and shall bear corresponding responsibilities according to the Advertising Law; MCN agencies and platforms that fail to fulfill their review and management obligations may also bear joint or corresponding responsibilities. Third, legal consequences: administratively, the parties may be ordered to stop the illegal activities, fined, or have their licenses revoked; civilly, consumers may claim refunds and compensation, and if it constitutes fraud, they may claim triple compensation according to the Consumer Rights and Interests Protection Law; in serious cases, criminal responsibility may be pursued under the Criminal Law for false advertising. In practice, operators should establish advertising review and language standardization systems to avoid using absolute language and making unverifiable efficacy claims.

IV. Practical suggestions and legal basis

Action list: First, operators and streamers should establish a review mechanism for promotional language to avoid making absolute or unverifiable claims about product efficacy; Second, they should keep the product qualifications, testing reports, and promotional materials on hand for verification; Third, consumers who encounter false advertising should promptly take screenshots, record videos, and save order and payment receipts; Fourth, they should first file complaints and reports with the platform and the 12315 Consumer Complaint Center, and if necessary, initiate legal action to claim compensation; Fifth, if the amount involved is large or there is a suspicion of criminal activity, they should promptly engage a lawyer to intervene. Legal basis: Article 8 and Article 20 of the Anti-Unfair Competition Law of the People's Republic of China (amended in 2019 and implemented on April 23, 2019); Article 55 of the Advertising Law of the People's Republic of China (amended in 2021); Article 55 of the Consumer Rights and Interests Protection Law of the People's Republic of China (amended in 2013 and implemented on March 15, 2014); and Article 222 of the Criminal Law of the People's Republic of China. For questions regarding intellectual property and corporate compliance, please consult the relevant authorities.Intellectual property protection and corporate lawTeam; for reference on contract and commercial disputesBusiness and contract disputes in enterprisesServices; for other difficult matters, we can provide assistance and referralSpecial services and other casesPlate. The specific application shall be subject to the currently effective laws, regulations, and judicial rulings.

5. Henglu Law Firm's Reminder

Firstly, false advertising may trigger administrative penalties, civil compensation, and criminal liability at the same time. Secondly, streamers, MCN agencies, and platforms are not bystanders and may bear corresponding or even joint and several liabilities. Thirdly, if it constitutes fraud, consumers can claim three times the compensation. Fourthly, absolute language and unfounded claims of efficacy are the focus of supervision and must be avoided. Fifthly, saving promotional screenshots and video recordings is key evidence for consumers to protect their rights. For cases involving counterfeit and shoddy products that constitute criminal offenses, referral to relevant authorities may be necessary.Criminal defense and criminal case filingThe plates, which involve compensation, recovery of damages, and enforcement, can be combined togetherCreditor's rights and debts, and enforcementFor any questions regarding corporate compliance, please feel free to consult us.Business and contract disputes in enterprisesTeam.

VI. Frequently Asked Questions

Q1: What penalties will be imposed for false advertising in live streaming?

According to Article 20 of the Anti-Unfair Competition Law, the supervision and inspection departments may order the cessation of illegal activities and impose a fine of not less than 200,000 yuan but not more than 1 million yuan; if the circumstances are serious, a fine of not less than 1 million yuan but not more than 2 million yuan may be imposed, and the business license may be revoked. If it constitutes false advertising, a fine of not less than three times but not more than five times the advertising cost shall be imposed in accordance with Article 55 of the Advertising Law. In addition, the party concerned shall bear civil compensation liability, and if the circumstances are serious, they may be guilty of the crime of false advertising.

Q2: Are streamers responsible for the false advertising in their live stream rooms?

It might be necessary. The streamer, depending on their role in the live stream, may be identified as an advertising operator, publisher, or advertising spokesperson, and must bear corresponding responsibilities in accordance with the Advertising Law; if they know or should know that the information is false but still proceed with the promotion, their responsibilities will be even greater. The merchant, as the advertiser, usually bears the main responsibility. If the MCN agency and the platform fail to fulfill their obligations of review and management, they may also bear joint or corresponding responsibilities, which will be determined based on their faults and degrees of participation.

Q3: Can I request triple compensation if I buy products with false advertising?

As long as the conditions are met. According to Article 55 of the Consumer Rights and Interests Protection Law, if the operator provides goods or services with fraudulent behavior, he shall, at the request of the consumer, increase the compensation for the losses suffered by the consumer, and the amount of the increase in compensation shall be three times the price of the goods purchased by the consumer or the cost of the services received by the consumer, but not less than 500 yuan. Whether it constitutes fraud shall be determined based on whether the promotional content is false and whether it affects the purchasing decision, etc.

Q4: Do live-streaming platforms have any responsibilities?

It depends on whether the platform has fulfilled its management obligations. The platform has the obligation to review and manage the content of the live stream room. If the platform knows or should know about the false advertising but fails to take necessary measures, it may bear corresponding responsibilities; for consumers, the platform may also bear obligations such as advance compensation. If the platform has established a review mechanism, dealt with illegal content in a timely manner, and cooperated with the investigation, it can usually reduce or exempt itself from liability. The specific responsibilities shall be determined according to its fault and the provisions of the law.

Q5: How can I protect my rights if I've been misled by false advertising?

Firstly, you should fix the evidence as soon as possible, including the live screen recording, screenshots of the product page, order and payment records, and communication records with customer service. Then, you can file a complaint with the platform, report the case to 12315 or the market supervision department; if no agreement can be reached, you can file a lawsuit to claim a refund and compensation. If it constitutes fraud, you can claim triple compensation. The more complete and timely the evidence is, the more likely you are to succeed in protecting your rights. If necessary, you can entrust a professional lawyer to handle the matter.

This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify the regional differences.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence materials, to avoid missing the statutory time limit. →Intellectual property protection legal services·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and open adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.