China Moves to Rein in Livestream Ads with New Draft Rules

Why It Matters

The rules aim to curb misleading health product promotions, protecting consumers and leveling the playing field for compliant brands in China's booming livestream market.

Key Takeaways

• SAMR drafts rules tightening health‑product ads on livestream platforms
• Platforms must warn, restrict traffic, or suspend violators
• Douyin removed 43,000 influencers and 793 sellers for false claims
• Review decisions must be issued within five working days

Pulse Analysis

Livestream commerce has surged in China, turning short‑form video apps into powerful sales channels for health supplements and medical devices. Brands like GNC China have leveraged Douyin’s massive user base to offset declining foot traffic in brick‑and‑mortar pharmacies, while consumers enjoy real‑time product demos and influencer endorsements. This rapid growth, however, has outpaced existing advertising safeguards, prompting regulators to revisit rules first introduced in 2020. The new draft measures reflect a broader shift toward tighter digital‑media oversight across the country.

The proposed regulations focus on four product categories—pharmaceuticals, medical devices, health foods and foods for special medical purposes—requiring platforms to conduct pre‑publication ad reviews and enforce penalties for non‑compliance. Violations such as disguising promotional content as wellness advice or using celebrity endorsements without disclosure could trigger warnings, traffic restrictions, or livestream suspensions. By mandating a five‑day review window and a ten‑day correction period, the draft seeks to create clearer, faster enforcement pathways, reducing the gray area that has allowed deceptive claims to proliferate.

For businesses, the draft signals a need to overhaul compliance processes and invest in transparent advertising practices. Companies must ensure that product information, pricing and specifications are presented accurately, and that any health claims are substantiated. Platforms like Douyin are already tightening enforcement, as evidenced by the removal of tens of thousands of influencers. Early adaptation will not only avoid regulatory penalties but also build consumer trust in an increasingly scrutinized digital marketplace.