(Promulgated by the State Council on October 26, 1987)
Article 1
For the purposes of strengthening the control over advertisements, promoting the development of advertisement industry, and effectively utilizing advertising media to serve socialist construction, this Regulation is formulated.
Article 2
All advertisements published, broadcast, installed or posted in the territory of the People's Republic of China through such media and forms as the press, broadcasting, television, films, street nameplates, shop windows, printed matters, neon lights shall be governed by this Regulation.
Article 3
The content of advertisements must be true to facts, sound, clear and easy to understand and may not in any case cheat users and consumers.
Article 4
Monopoly and unfair competition shall be prohibited in advertising operations.
Article 5
The national and local administration departments for industry and commerce at all levels are authorities responsible for the control over advertisements.
Article 6
An unit or individual industrial or commercial household which intends to engage in the advertising business (hereinafter referred to as the "advertising operator") shall, as required by this Regulation and other applicable laws and regulations, file an application with an administration department for industry and commerce, and carry out the following different formalities for approval and registration:
1. If the advertising operator is an enterprise which intends to specialize in the advertising business, the Business License for the Enterprise as Legal Person shall be issued thereto;
2. If the advertising operator is an institution which intends to engage concurrently in the advertising business, the License for Advertising Operation shall be issued thereto;
3. If the advertising operator is an individual industrial or commercial household which is capable of operating the advertising business, the Business License shall be issued thereto; or
4. If the advertising operator is an enterprise which intends to engage concurrently in the advertising business, the change of its business scope shall be registered.
Article 7
The content of an advertisement to be published, broadcast, installed or posted shall be restricted within the advertiser's business scope or within the limits specified by the State.
Article 8
An advertisement may not be published, broadcast, installed or posted if it's content --
1. violates any law or regulations of the State; or
2. impairs the national dignity of the State; or
3. involves designs of the national flag, national emblem or national anthem or the music of the national anthem of the People's Republic of China; or
4. is reactionary, obscene, superstitious or absurd; or
5. is fraudulent; or
6. depreciates products of the same kind.
Article 9
News media shall provide clear indications for the advertisements they publish or broadcast. No news media may publish or broadcast advertisements in the form of news reports and collect fees for these reports. No journalist may solicit any advertisements in the name of news coverage.
Article 10
Advertising of cigarettes through broadcast, television, newspapers or periodicals shall be prohibited.
With approval of administration departments for industry and commerce, famous wines and liquors of good quality which have won prizes at the national, ministerial or provincial level may be advertised.
Article 11
An advertiser applying for publishing, broadcasting, installing or posting any of the following advertisements shall produce respectively --
1. the certificate issued by an administration department for standardization or by a quality inspection agency authenticated to be qualified by metrological verification, at or above the provincial municipality level if it advertises the quality standard of the goods;
2. the certificate of award for the current session or year or for successive sessions or years if it advertises the goods as prize-winner, and the class of prize and prize-awarding department shall also be clearly indicated in the advertisement;
3. the certificate of high-quality product issued by the government department if it advertises the title of high-quality product, and clear indications shall also be made in the advertisement as to when and by which department the title was conferred on;
4. the patent license if it advertises the patent right of the goods;
5. the certificate of trademark registration if it advertises the registered trademark of the goods;
6. the production permit if it advertises the product which requires production permit;
7. the certificate issued by the higher competent authority if its advertisement is for culture, education or public health;
8. the appropriate certificates issued by relevant government departments or agencies authorized by them for any other advertisements.
Article 12
An advertising operator undertaking the advertising business or acting as the agent shall check the certificate, examine the contents of advertisement, and may not publish, broadcast, install or post any advertisements which violate the provisions of this Regulation.
Article 13
The plans for the installation and posting of outdoor advertisements shall be worked out by local people's governments through organizing the relevant departments respectively in charge of industry and commerce, urban construction, environmental protection and public security, and shall be enforced under the supervision of the administration departments for industry and commerce.
No advertisement may be installed or posted in controlled areas near government organs or cultural relics under special protection, or in areas where installation and posting of advertisements are prohibited by local people's governments.
Article 14
An advertising operator shall fix the advertising rates and submit them to the administration department at its site for industry and commerce and for price for the record.
Article 15
The national administration department for industry and commerce shall, together with the national administration department for price, fix the rates of fees to be charged for acting as agents in advertising business.
Local administration departments for industry and commerce shall, together with the departments for price and urban construction, fix the rates of fees to be charged for the use of places and buildings for outdoor advertisements and report them to local people's governments for approval.
Article 16
Every advertising operator must, as required by the State, establish bookkeeping records, pay taxes according to law, and accept the supervision and inspection of the administration departments for finance, auditing and industry and commerce.
Article 17
In undertaking or acting as agents in advertising business, advertising operators shall sign with advertisers or those who have entrusted them with the business written contracts, which shall define explicitly each party's liability.
Article 18
If an advertiser or advertising operator violates any provision of this Regulation, the administration department for industry and commerce concerned shall, depending on the seriousness of the case, impose the following penalties respectively thereon:
1. stopping advertising;
2. making public corrections as ordered;
3. circulating a notice of criticism;
4. confiscation of the illegal gains therefrom;
5. fines;
6. suspending business for consolidation; or
7. revocation of the business license or the license for advertising operation.
Anyone who, in violation of the provisions of this Regulation, has serious circumstances and commits a crime shall be investigated for criminal responsibility by the judicial authority according to law.
Article 19
Any advertiser or advertising operator who disagrees with the penalty decision made by the administration department for industry and commerce may, within 15 days following receipt of the notice of penalty decision, apply for a reconsideration to the administration department for industry and commerce at the next higher level. The party concerned who disagrees with the reconsideration decision may, within 30 days following receipt of the reconsideration decision, bring an action before a people's court.
Article 20
An advertiser or advertising operator who, in violation of the provisions of this Regulation, causes loss on its users and consumers or committed other acts of infringement shall be liable therefor.
With respect to claims for damages, the claimant may request the administration department for industry and commerce at or above the county level for handling. The party concerned who disagrees with the decision made by the administration department for industry and commerce may bring an action before a people's court. The claimant may directly bring an action before a people's court.
Article 21
The State Administration for Industry and Commerce shall be responsible for the interpretation of this Regulation, and formulate the detailed rules for implementation thereof..
Article 22
This Regulation shall enter into force on December 1, 1987. The Interim Regulation on the Control over Advertisements promulgated by the State Council on February 6, 1982 shall be annulled simultaneously.
