[Direct answer]In the Beijing area, the conclusion is that they may bear administrative, civil, and even criminal responsibilities simultaneously. According to Article 8 of the Anti-Unfair Competition Law of the People's Republic of China, operators shall not make false or misleading commercial propaganda about the performance, function, quality, sales status, user evaluations, or honors of their products, deceiving and misleading consumers; according to Article 20 of the same law, supervision and inspection departments may order the cessation of illegal acts and impose fines, and in serious cases, they may revoke the business licenses. If it constitutes false advertising, it may be ordered to stop publishing the advertisements, confiscate the advertising fees, and impose fines in accordance with the relevant provisions of the Advertising Law of the People's Republic of China. If it constitutes fraud against consumers, consumers may claim for additional compensation in accordance with the Consumer Rights and Interests Protection Law of the People's Republic of China; if the circumstances are serious and constitute the crime of false advertising, criminal responsibility shall be investigated according to law. The specific forms and degrees of responsibility shall be determined based on the nature of the act, the circumstances, and the consequences.
I. Problem background and typical scenarios
False advertising is commonly seen in scenarios such as e-commerce detail pages, live-streaming sales, store posters, and promotional leaflets. Typical examples include: exaggerating the product's efficacy and ingredient content; fabricating sales figures, positive reviews, or honorary qualifications; using absolute terms such as "best" or "first"; falsifying honorary qualifications or test results; and misleading consumers with false price comparisons. When dealing with such issues, the market supervision authorities and courts in Beijing not only review the authenticity and verifiability of the promotional content, but also pay attention to whether it is sufficient to cause misunderstandings among the general public. Based on this, they determine the administrative penalties and civil compensation.
II. Key points of dispute
First, whether the promotional content constitutes false or misleading information. Second, the burden of proof for statements regarding performance and efficacy. Third, the boundary between false advertising and normal commercial hype and artistic exaggeration. Fourth, how to determine the types and severity of administrative penalties. Fifth, the conditions and multipliers for consumers to claim increased compensation. Sixth, the responsibilities of platform operators and advertisement publishers. Seventh, the identification and transfer of suspected criminal offenses. These issues determine the nature and severity of the responsibilities.
III. Professional analysis by Henglue Law Firm
Based on Henglu Lawyer's practical experience in handling corporate compliance and competition law matters, such issues should focus on four aspects. Firstly, the identification standard: According to Article 8 of the Anti-Unfair Competition Law of the People's Republic of China, false or misleading commercial publicity can constitute an infringement. The judgment shall be based on the general understanding of the relevant public, without requiring actual damage. Secondly, the burden of proof: Operators have the obligation to prove the authenticity of the publicity content. Statements that cannot be supported are easily regarded as false publicity. Thirdly, the level of liability: Administratively, operators may be ordered to stop the infringement, fined, or even have their licenses revoked; if it constitutes fraud in civil law, consumers may claim additional compensation according to the Consumer Rights and Interests Protection Law of the People's Republic of China; if the circumstances are serious, those suspected of false advertising crimes may be transferred to judicial authorities. Fourthly, distinguishing boundaries: Moderate commercial publicity and artistic exaggeration are generally not illegal, but statements concerning product performance, qualifications, and safety should be true, accurate, and verifiable. Fifthly, platform responsibilities: Platforms or advertisement publishers who know or should know about the falsehood but still publish or promote it may bear corresponding responsibilities. Sixthly, compliance key points: Establishing a review and traceability system for publicity materials to ensure that data, qualifications, and honors can be verified is the fundamental way to prevent risks.
IV. Practical suggestions and legal basis
Practical suggestions: First, operators should establish a mechanism for reviewing and documenting promotional content to ensure that the statements are true and verifiable. Second, avoid using absolute language and unverifiable claims about effectiveness, sales, and honors. Third, promptly handle consumer complaints to reduce administrative and civil risks. Fourth, when receiving regulatory investigations or lawsuits, promptly secure evidence of promotional activities and evidence of rectification. Fifth, when consumers encounter false advertising, they can file complaints with the market supervision department and claim corresponding compensation. Sixth, if the responsibility of the platform or advertisement publisher is involved, claim compensation accordingly. For platform services, please refer to the relevant provisions.Intellectual property protection and corporate law,Business and contract disputes in enterprises、Creditor's rights and debts, and enforcement、Criminal defense and criminal case filingAndSpecial servicesLegal basis: Article 8 and Article 20 of the Anti-Unfair Competition Law of the People's Republic of China (amended in 2019 and implemented since April 23, 2019), the current provisions on false advertising in the Advertising Law of the People's Republic of China, as well as the provisions on fraud compensation in the Consumer Rights and Interests Protection Law of the People's Republic of China and the current provisions on the crime of false advertising in the Criminal Law of the People's Republic of China. The specific application shall be subject to the currently effective laws and regulations and judicial rulings.
5. Henglu Law Firm's Advice
Firstly, false advertising may face administrative penalties, civil compensation, and criminal liability simultaneously. Secondly, whether the advertising content is false or misleading shall be determined based on the general understanding of the relevant public. Thirdly, the operator has the burden of proof for the authenticity of the advertising, and if it cannot be verified, it will be easily deemed illegal. Fourthly, if it constitutes fraud, consumers can claim additional compensation according to law. Fifthly, if the platform or the advertiser knowingly publishes false information, they may be held liable. Sixthly, in serious cases, it may constitute the crime of false advertising, and the perpetrators shall bear criminal responsibility. Seventhly, establishing an advertising review and traceability system is the most effective way to prevent risks. It is recommended to consult professional opinions in advance.
VI. Frequently Asked Questions
Q1: What is the fine for false advertising?
The severity of the punishment will depend on the circumstances of the case. According to Article 20 of the Anti-Unfair Competition Law of the People's Republic of China, the supervision and inspection departments may order the cessation of illegal activities and impose fines, and in serious cases, the business licenses may be revoked; if it constitutes false advertising, it may be ordered to stop the publication of advertisements, confiscate the advertising fees, and impose fines in accordance with the nature and consequences of the act.
Q2: Can consumers request an increase in compensation?
It can constitute fraud. According to the relevant provisions of the Consumer Rights and Interests Protection Law of the People's Republic of China, if the operator provides goods or services with fraudulent behavior, the consumer may claim for additional compensation. When making the claim, the consumer should keep the promotional pages, transaction records, and communication evidence to prove that the promotional content is untrue and has affected the purchase decision.
Q3: Is it always illegal to exaggerate in advertising?
Not necessarily. Moderate commercial promotion and artistic exaggeration are usually not considered illegal, but statements regarding product performance, ingredients, qualifications, sales, and safety must be true, accurate, and verifiable. If the statements cannot be substantiated and are likely to cause public misunderstanding, they may be deemed as false or misleading commercial promotion.
Q4: Should the platform be held responsible?
They may be held accountable. If the platform or the advertiser know or should have known that the promotional content is false but still publishes or promotes it, they may bear corresponding administrative or civil liabilities; if they fail to take necessary measures promptly after receiving the complaint notice, they may still be held accountable for the expanded damage. The specific liability shall be determined based on their review obligations and handling circumstances.
Q5: How can merchants comply with regulations and respond appropriately?
It is recommended to establish a system for reviewing and documenting promotional materials to ensure that data, qualifications, and honors can be verified; avoid using absolute language and unverifiable statements; promptly handle consumer complaints and take proactive remedial measures. When receiving regulatory investigations or lawsuits, fix the promotional basis and rectification records as soon as possible, and consult professional lawyers when necessary.
The above Q&A is mainly based on the judicial practice in Beijing. There may be differences in the interpretation of the law in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.
If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence, to avoid missing the statutory time limit.Intellectual property protection legal services·Beijing Henglu 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.