- Professional News
- 29 April 2015
Record-breaking fine for deceptive marketing in China
A fine of USD 1m was the result when, in March 2015, the Chinese AIC authorities assessed a case in which Procter & Gamble was accused of performing deceptive marketing. The fine is the largest of its kind in China.
Procter & Gamble used a Taiwanese film star for its marketing of CREST toothpaste. It appeared from the advertisement that using CREST toothpaste results in white teeth and that the effect is visible after only one day of use.
The advertisement used a manipulated photo, and it was not possible to prove that the effect was visible after one day only. For this reason, the Chinese administrative AIC authorities imposed a fine of USD 1m on Procter & Gamble. This is to date the largest fine imposed on any undertaking in China for making deceptive marketing statements.
The decision signals a steadily increasing focus by the Chinese authorities on particularly the marketing statements of foreign undertakings. Chinese marketing regulations are expected to become stricter in the years to come.
For advice on Chinese marketing rules, please contact Claus Barrett Christiansen at email@example.com.