Affected by the epidemic, "live streaming with goods" is developing rapidly. On July 29, 2020, the SAMR issued the Announcement of SAMR on Publicly Soliciting Opinions on the Guiding Opinions of the SAMR on Strengthening the Supervision of Webcast Marketing Activities (Draft for Comments) (hereinafter referred to as Draft). The deadline is August 28, 2020. It is the first time that China has raised the supervision of live streaming marketing activities to the legal level.  In the future, live streaming will no longer be out of law.

In order to help companies better understand the relevant content, Antion analyzed and interpreted the main content and impact of the Draft.

Clarify the legal responsibilities of commodity operators and network anchors

For commodity operators, the Draft requires that products sold through live streaming marketing be inspected to be qualified, not adulterated, and commodities or service information be disclosed truly and accurately in accordance with the relevant laws and regulations such as the E-Commerce Law to ensure consumption rights, and unfair competition be forbidden.

It is worth noting that the Draft clarifies the responsibilities of network anchors. If the anchor makes live streaming with goods or is identified as the endorser, she will bear joint liability with the advertisement publisher and operator. Under the constraints of corresponding laws and regulations, the sales promotion of anchor can be regulated to avoid exaggerated and false content during the live streaming.

Strictly regulate the live streaming marketing of special foods such as health foods

The Draft points out that the purchase inspection and acceptance system should be established and implemented for marketing products, and relevant certification documents should be checked. The products sold on live streaming should be checked, and a sales-end product inspection mechanism should be established.

The requirements of advertisement review and publication should be clarified. Advertisements required review before release, such as health foods and formula foods for special medical purposes, are not allowed to be released via live streaming. According to this regulation, health foods and foods for special medical purposes require pre-approval and product endorser cannot be used. The health food industry will also face new challenges using live streaming with goods.

Clarify the penalties and basis for illegal acts of live streaming marketing

The Draft has clear requirements for the chaotic live streaming. The products marketed through live streaming are the same as other products sold online, and consumers should enjoy their due rights.

Please click Interpretation to Guiding Opinions of the SAMR on Strengthening the Supervision of Webcast Marketing Activities (Draft for Comments) to get more changes of the Draft.