selfregulation

Self-Regulation in China : Self-Regulation in China Edward Lehman LEHMAN, LEE & XU 16 November 2007


Overview of China’s Advertising Regulatory Structure : Overview of China’s Advertising Regulatory Structure


Slide3 : Before & Now


Business Revenue of China’sAdvertising from 1990-2006[Unit: one hundred million Yuan (RMB)][Source: State Administration of Industry & Commerce] : Business Revenue of China’s Advertising from 1990-2006 [Unit: one hundred million Yuan (RMB)] [Source: State Administration of Industry & Commerce]


Global Advertising Market Share 2004[Source: iReserachGroup] : Global Advertising Market Share 2004 [Source: iReserachGroup]


Functions of Advertising Administrative  Organs : Functions of Advertising Administrative Organs


Slide7 : Administration, Law Execution and Supervision


Advertising Administrative Structure : Advertising Administrative Structure State Administration for Industry and Commerce (SAIC)


Prior Examination of Ads By Chinese Governmental Departments : Prior Examination of Ads By Chinese Governmental Departments Ministry of Agriculture Ministry of Info. Industry Administration of Radio, Film & TV General Admin. of Press & Publication Ministry of Health Food & Drug Administration


Roles & Functions of AICs : Roles & Functions of AICs Department of Advertising Regulation of SAIC is the competent authority directly under the State Council in charge of drafting and enforcing regulations and the implementation rules thereof. AICs are in charge of market supervision/regulation and related law enforcement through administrative means.


Slide11 : Any person, either natural or legal, who alleges that the advertising operators have infringed their legitimate rights and caused damages to their properties or other rights may report the case to the competent AIC who will grant an administrative decision upon the case. Either party may appeal to the AIC at the next higher level or bring a suit directly to the people’s court if they are not happy with the decisions.


Additional Approvals for Special Products : Additional Approvals for Special Products Approvals are needed for the advertisements of health foods, pharmaceuticals and medical equipment from the Administration of Foods and Pharmaceuticals. Approvals are needed for the advertisements of tobaccos and outdoor advertisements from the AIC. Approvals are needed for the advertisements of pesticides and animal drugs from the government agencies of agriculture.


Self-Regulation in China : Self-Regulation in China


China Advertising Association (CAA) : China Advertising Association (CAA) It is a self-regulatory entity, but to a certain extent, supervised by SAIC Its main mission is to provide consultation and legal opinions to advertising operators and agencies set up under supervision of SAIC Their opinions are not final but are accepted by competent government agencies more often than not in view of their experience and connection with SAIC


Advertising Consultation Procedure : Advertising Consultation Procedure Notice of Preliminary Examination & comments


Advantages of Consultation Process : Advantages of Consultation Process CAA has close connection with Department of Advertising Regulation of SAIC and is abreast of legal development and new guidelines Consultation process is voluntary CAA adopts a two-pronged examination process CAA is responsible for rectifying problems that arise after consultation & authentication


Ways To Improve Efficiency of Advertising Self-Regulation : Ways To Improve Efficiency of Advertising Self-Regulation Entrust more powers and responsibilities to Legal Consultative Commission of CAA Extend the scope of self-regulation Increase transparency and awareness of self-regulation Establish advertising dispute settlement and complaint resolution mechanisms


Slide18 : Edward E. Lehman Lehman Lee & Xu Chinese Law Firm with a Global Perspective Beijing, China elehman@lehmanlaw.com www.lehmanlaw.com