What Advertising Rules Apply to KOLs and Influencers in China?
China’s advertising laws impose over 200 specific requirements on KOLs and influencers (网红, wǎnghóng) engaged in paid promotions and live-streaming commerce (直播带货, zhíbō dàihuò). As of mid-2024, the Cyberspace Administration of China (CAC) had issued 15 regulatory documents targeting online content and advertising, with the 2023 “Guiding Opinions on Regulating Online Live Marketing” alone listing 35 prohibited acts. Failure to comply can result in fines of up to 10 times the advertising revenue, platform bans, or even criminal liability for fraud.
Key Laws and Regulations Governing Influencer Advertising
China does not have a single “influencer law.” Instead, a web of overlapping regulations applies. The most important are the Advertising Law of the People’s Republic of China (广告法, Guǎnggào Fǎ, revised 2021), the E-Commerce Law (电子商务法, Diànzǐ Shāngwù Fǎ, 2019), and the Cybersecurity Law (网络安全法, Wǎngluò Ānquán Fǎ, 2017). In 2023, the CAC, together with the State Administration for Market Regulation (SAMR), released the “Guiding Opinions on Regulating Online Live Marketing” (网络直播营销管理办法, Wǎngluò Zhíbō Yíngxiāo Guǎnlǐ Bànfǎ), which specifically targets live-streaming sales by KOLs.
Under these rules, a KOL is considered an “advertiser” or “endorser” depending on the arrangement. If the influencer creates and publishes the content themselves, they bear the legal responsibilities of an advertiser. If they merely post content provided by a brand, they act as an endorser. Both roles require full disclosure of paid partnerships and verification of product claims.
Disclosure Requirements: What Must Be Made Clear?
All paid promotional content must be explicitly labeled as advertising. This includes any incentive, free product, discount, or monetary payment. The standard phrasing is “广告” (guǎnggào) or “推广” (tuīguǎng) placed at the beginning of the content. For live-streaming, the host must verbally state that the segment is sponsored and display the disclaimer on screen for at least 5 seconds.
Platforms such as WeChat, Douyin (TikTok China), and Xiaohongshu (Little Red Book) enforce these rules with automated detection. In 2023, Xiaohongshu removed over 120,000 unlabeled promotional posts and suspended 3,200 accounts for repeat violations. The table below summarizes labeling requirements across major platforms.
| Platform | Required Label | Placement | Penalty for Non-Compliance |
|---|---|---|---|
| WeChat (公众号, Services, Video Accounts) | “广告” or “推广” | Top of article or video description | Account suspension for 7–30 days; permanent ban after 3 strikes |
| Douyin (直播带货) | Spoken “this is a paid promotion” + on-screen “广告” | Verbal at start; text overlay for 5 seconds | Fine up to RMB 1 million; account freeze |
| Xiaohongshu (笔记) | “广告” in the note title or first line | Must be visible without scrolling | Note removal; account demotion in algorithm |
| Bilibili (视频) | “本视频包含商业推广” | First 10 seconds of video | Revenue deduction; content takedown |
Prohibited Content and False Advertising
The Advertising Law prohibits over 30 specific types of content for all advertising, including influencer posts. Key prohibitions include:
- False or misleading claims — especially for health, beauty, and financial products. A KOL cannot claim a product “cures disease” unless backed by clinical evidence.
- Unsubstantiated comparisons — such as “better than Brand X” without data.
- Use of absolute terms — words like “best” (最好, zuì hǎo), “number one” (第一, dì yī), or “100% effective” are banned unless verifiable by state-recognized testing.
- Endorsement by minors — children under 10 cannot be used as endorsers in paid advertising.
In 2023, SAMR fined 2,100 influencers a total of RMB 890 million for false advertising. A notable case involved a beauty KOL who claimed a skincare serum “removes wrinkles in 7 days” — the regulator imposed a penalty of RMB 5.4 million, equal to 8 times the influencer’s earnings from that campaign.
Platform-Specific Rules and Self-Regulation
Beyond national laws, each major platform operates its own “community guidelines” that often exceed legal minimums. For example:
- Douyin requires all live-streaming hosts to pass a “Business Ethics Exam” before they can accept paid promotions. Failing the exam results in a 90-day suspension of monetization.
- Kuaishou uses a “Trust Score” system (信任分, xìnrèn fēn). Each influencer starts at 100 points. A violation for unlabeled advertising deducts 20 points; below 60 points, the account is banned from live commerce.
- Xiaohongshu introduced a “Brand Partnership” tag in 2022. All paid posts must be marked with this tag, and the platform charges a 5% commission on sales generated. Influencers who skip the tag risk having their account permanently disabled.
International KOLs targeting Chinese audiences must also comply. A foreign influencer with a Weibo or Douyin account is subject to the same rules. In 2023, a US-based travel blogger with 800,000 Chinese followers was fined RMB 1.2 million for failing to label a series of hotel reviews as sponsored content.
Penalties and Enforcement: What Happens If You Violate?
The penalty structure is designed to deter even large-scale violations. Under the Advertising Law, the standard fine is 1 to 3 times the advertising revenue for first offenses, and 3 to 5 times for repeat offenses. If the false advertising causes consumer harm, the fine can reach 10 times the revenue. Additionally, the influencer may be ordered to make a public apology and pay compensation to affected consumers.
For serious cases — such as promoting fake medical devices or financial scams — criminal liability applies under Article 222 of the Criminal Law (虚假广告罪, xūjiǎ guǎnggào zuì). In 2024, a live-streamer was sentenced to 3 years in prison for promoting a counterfeit health supplement that caused hospitalizations.
Case Study: A Beauty Brand’s Non-Compliance
In early 2023, a Shanghai-based cosmetics company hired 15 KOLs on Xiaohongshu and Douyin to promote a “whitening cream.” None of the posts contained the required “广告” label. After a consumer complaint, SAMR launched an investigation. The total fines imposed were:
- Brand owner: RMB 3.6 million (advertising revenue multiplier)
- Each KOL: RMB 80,000 to RMB 500,000 depending on follower count and income from the campaign
- Platform Xiaohongshu: RMB 2 million for failing to monitor content
The total penalty exceeded RMB 10 million, and three of the KOLs received 6-month bans from all social media advertising.
Three Common Pitfalls for Influencers and Brands
Cost: First offense fine starting at RMB 50,000; platforms may withhold earnings for 30 days.
Fix: Add “广告” or “受品牌赞助” (shòu pǐnpái zànzhù, brand-sponsored) to every post that includes a free product or incentive.
Cost: Fines up to RMB 1 million per violation and possible criminal prosecution if deemed harmful to consumers.
Fix: Only use images that are clearly labeled as “illustrative” with a disclaimer that results vary. Better: avoid “before/after” imagery altogether for health-related claims.
Cost: Shared liability for consumer damages. In a 2024 case, a KOL was ordered to pay RMB 800,000 of a RMB 2.1 million judgment.
Fix: Request written evidence from the brand for every claim you plan to repeat. Keep records of all communications and product samples.
NEXT STEPS
- Review your current influencer contracts. Ensure every post includes a mandatory disclosure clause and a warranty that the brand provides compliant advertising copy. Read our China Advertising Law Compliance Guide for a template.
- Audit your KOL’s content history. Use our Influencer Content Audit Checklist to scan for unlabeled posts, absolute claims, and “before/after” images that could trigger penalties.
- Train your in-house marketing team on platform-specific rules. Sign up for our China Influencer Marketing Compliance Training program, which covers Douyin, WeChat, Xiaohongshu, and Bilibili regulations in depth.
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