In March, the Shanghai Market Supervision Bureau and the Shanghai Medical Products Administrative Bureau jointly issued the “Shanghai Cosmetic Industry Advertising Compliance Guidelines” (“Guidelines”).  The Guidelines are based on the national Advertisement Law (as amended 2021) and Cosmetic Labeling Administration Provisions issued by the National Medical Products Administration in 2021.  The Guidelines offer practical guidance and direction in this area.

For example, the Guidelines provide that cosmetic manufacturers and distributors should integrate advertisement compliance into company regulatory compliance systems, including by forming an advertisement review and approval process to manage the design, production, and release of advertisements, to ensure the traceability of advertisements, and to ensure regular recordkeeping for no less than three years.

The Guidelines emphasize that Internet advertising must comply with both general advertising law and those specific to the Internet (e.g., rules released in 2016, see here).  This emphasis is significant because Internet advertising has gradually replaced advertisements in traditional media (e.g., television, print news).  Internet advertising includes advertisements on company websites, WeChat accounts, mobile apps, and other social media sites.  Despite this expansion, historically there has been confusion about the applicability of advertising rules to Internet-based content.  The Guidelines provide some additional clarity in this respect, including requiring that influencers’ recommendations of cosmetic products on social media comply with advertising regulations, and marking those posts as “advertising” (already a general requirement under the 2016 advertising rules on Internet advertising) if the post contains a link to a site where a consumer can purchase the product.

Regarding product claims, the Guidelines provide do’s and don’ts, some of which repeat prohibitions in existing rules.  For example: 

  • Advertisements for anti-wrinkle products must not claim wrinkle removal effects. 
  • Advertisements for hair care products must not claim to repair damaged hair or split ends.  
  • Claims that a product does not contain an illegal ingredient (i.e., “heavy metal free”) are prohibited. 
  • Cosmetics advertisements must not claim that cosmetics are “pure natural” or “organic,” or make broad statements that a product does not contain allergens.

A full copy of the Guidelines is available here.

For further information or inquiries relating to this post, please email APACRegBlog@cov.com.

Contributors for the China & APAC Food, Drug, Device, and Cosmetics blog:

John Balzano, Julia Post, Muyun HuKaixin Fan, and Kexin Yang.

Photo of Muyun Hu Muyun Hu

Muyun Hu advises multinational and Chinese companies on a range of regulatory, policy, transactional, and litigation matters. Her work focuses on the life science industry, particularly with regard to food, drug, medical device, cosmetic, and other regulated products.

Photo of John Balzano John Balzano

John Balzano represents companies and business associations on U.S. and China regulatory and policy matters related to food, drugs, medical devices, cosmetics, and other regulated products.

John has over a decade of experience with legal and regulatory issues related to China, particularly with…

John Balzano represents companies and business associations on U.S. and China regulatory and policy matters related to food, drugs, medical devices, cosmetics, and other regulated products.

John has over a decade of experience with legal and regulatory issues related to China, particularly with regard to products regulated by the State Administration for Market Regulation, the National Medical Products Administration (NMPA), and other agriculture, animal and healthcare (including digital health) products and services. He assists clients with developing strategies to obtain pre-market approvals for these products in China, including clinical development, understanding relevant pricing and reimbursement policies, and reviewing distribution and promotional plans.

He also advises on regulatory compliance, due diligence, and enforcement matters for China operations, including drafting and revising and integrating China and global standard operating procedures, assessing the functions of regulatory departments in China, responding to inspection results and enforcement inquiries, and implementing product recalls. John also has significant experience designing strategies to handle professional consumer litigation for food and cosmetic companies operating in China and working with local counsel.

He advises companies and industry associations on their advocacy strategies, including the notice and comment process before NMPA and other regulatory agencies.

John has particular experience in the U.S. advising on the requirements for the acquisition and transfer of biospecimens for research purposes.