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China steps up pressure on tech with draft online ad rules

SHANGHAI, Nov 26 (Reuters) – China’s market regulator proposed new rules on Friday that might enhance online promoting oversight, together with stipulating that adverts mustn’t have an effect on regular web use or mislead customers.

Authorities in China have tightened regulation throughout a spread of industries this 12 months, with an emphasis on expertise.

Search big Baidu Inc and sport writer Tencent Holdings (0700.HK) warned throughout latest quarterly outcomes that the short-term outlook for promoting gross sales regarded weak, impacted by the pandemic and China’s regulatory crackdown.

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Internet promoting should “meet the requirements for the establishment of socialist spiritual civilization and the promotion of excellent traditional culture of the Chinese nation”, the State Administration for Market Regulation stated.

The proposed rules name on platform operators to ascertain a system for registering and reviewing advertisers and adverts, and “monitor and inspect the content of advertisements displayed and published by using its information services.”

The proposed rules additionally name for bans on ads aimed toward minors selling medical remedies, cosmetics and online video games “that are not conducive to the physical and mental health of minors.”

The proposed new rules are open for public remark till Dec. 25, the regulator stated on its web site.

Shares in Hong Kong-listed Tencent and supply big Meituan (3690.HK) fell 0.5% and 1% respectively after the draft rules had been printed.

In September, China’s our on-line world regulator printed draft rules dictating how firms can use algorithmic suggestions, after earlier rules pertaining to the usage of information and unfair competitors.

Before that, Chinese ride-hailing big Didi Chuxing (DIDI.N) fell topic to a probe for alleged privateness violations days after it listed within the United States, whereas e-commerce big Alibaba Group Holding Ltd (9988.HK) obtained a report $2.8 billion advantageous for anti-competitive behaviour.

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Reporting by Brenda Goh and Josh Horwitz in Shanghai; Editing by Kim Coghill and Alexander Smith

Mobile phone cases are seen displayed at a souvenir stall outside the Memorial of the First National Congress of the Communist Party of China, ahead of the 100th founding anniversary of the Communist Party of China, in Shanghai, China May 21, 2021. REUTERS/Aly Song/File Photo

A computer network cable is seen above a Chinese flag in this July 12, 2017 illustration photo.   REUTERS/Thomas White/Illustration

Mobile phone cases are seen displayed at a souvenir stall outside the Memorial of the First National Congress of the Communist Party of China, ahead of the 100th founding anniversary of the Communist Party of China, in Shanghai, China May 21, 2021. REUTERS/Aly Song/File Photo

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