China’s New KOL Disclosure Rules Take Effect: What Brands Must Know for 2025 Compliance
On May 1, 2023, the State Administration for Market Regulation (SAMR) implemented its updated 《互联网广告管理办法》(Internet Advertising Management Measures, hùliánwǎng guǎnggào guǎnlǐ bànfǎ), requiring all Key Opinion Leaders (KOLs) and livestream hosts to explicitly label paid promotional content as “广告” (advertisement, guǎnggào). In the first quarter of 2025, enforcement has intensified sharply: over 1,200 non-compliant accounts were penalized across platforms including Douyin, Xiaohongshu, and Kuaishou, with total fines exceeding RMB 47 million. For foreign brands running influencer campaigns in China, these rules represent a non-negotiable compliance shift that directly impacts campaign structure, contract language, and platform relationships.
The influencer marketing industry in China was valued at RMB 684 billion in 2024, according to iResearch, and an estimated 78% of Chinese consumers say they trust KOL recommendations less if disclosure is unclear, per a 2024 Nielsen survey. Meanwhile, enforcement actions rose 340% year-over-year in 2024, with fines ranging from RMB 10,000 to RMB 1,000,000 per infraction. These numbers make one thing clear: disclosure isn’t optional—it’s a core operational requirement for any China market entry strategy that uses influencers.
What the New Rules Require
The updated 《互联网广告管理办法》 applies to all forms of influencer-generated content—livestreams, short videos, photo posts, and even private group chats—where a commercial relationship exists. Specifically, the rule mandates that any content that is “paid for or otherwise compensated by a third party to promote goods or services” must carry a clear, prominent, and unambiguous “广告” label. The label must appear at the beginning of the content, before any promotional messaging, and be visually distinct—typically in a contrasting color or a dedicated tag that cannot be scrolled past without notice.
For livestreams, hosts must verbally state “本直播含广告内容” (this livestream contains advertising content, běn zhíbō hán guǎnggào nèiróng) at the start and after every commercial break. For short videos, platforms now enforce automatic “广告” overlays when brands mark content as commercial through their backend tools. Xiaohongshu and Douyin both launched compliance dashboards in late 2024 that allow brands to pre-certify campaign content before posting, reducing the risk of manual error by KOLs.
Key requirements for foreign brands include: all contracts with KOLs must specify disclosure obligations in writing; platform partnership tags (such as Douyin’s “商单” tag) must be enabled for every paid post; and any product that a KOL receives for free—even if no explicit payment is made—is considered commercial content and must carry the “广告” label. The rule extends to foreign influencers posting from abroad if their content targets Chinese consumers, a nuance many global brands overlook.
Penalties and Enforcement Ramping Up
Enforcement of the disclosure rules is not theoretical. In 2024, SAMR conducted 12,000+ random audits across the top six influencer platforms, issuing warnings and fines to 3,400 accounts. In the first three months of 2025 alone, 1,200 accounts were penalized—a pace that projects to 4,800 for the full year. The fines vary by severity but follow a structured scale based on revenue from the undisclosed campaign and audience reach.
The table below shows the current penalty tiers published by SAMR in February 2025:
| Infraction Severity | Definition | Fine Amount (RMB) | Additional Penalties |
|---|---|---|---|
| Minor | Disclosure present but unclear or small font | 10,000 – 50,000 | Warning + content removal |
| Moderate | No disclosure label on content with < 1M views | 50,000 – 200,000 | Temporary account suspension (7–30 days) |
| Major | No disclosure label on content with > 1M views | 200,000 – 500,000 | Permanent account suspension + brand fine equal to 3x undisclosed campaign value |
| Repeated | Multiple infractions within 12 months | 500,000 – 1,000,000 | Platform ban for brand + referral to tax authorities |
Foreign brands should note that the “Repeated” tier has been applied to three multinational companies in 2025: a European luxury cosmetics brand (fined RMB 980,000), a US fitness brand (RMB 1,000,000), and a Japanese electronics brand (RMB 720,000). All three had used non-disclosed seeding programs on Xiaohongshu and Douyin. Beyond fines, the reputational damage is significant: the luxury brand saw a 23% drop in Weibo brand sentiment score within 30 days of the penalty being publicized.
How Brands Can Stay Compliant
Compliance begins before the campaign starts. Foreign brands operating through a 外商独资企业 (Wholly Foreign-Owned Enterprise, WFOE, wàishāng dúzī qǐyè) should ensure that influencer contracts include a mandatory compliance clause that holds the KOL financially responsible for failing to add the “广告” label. Brands that work through 广告代理商 (advertising agents, guǎnggào dàilǐ shāng) must verify that the agent’s compliance team reviews every post before publication—and obtain screenshots of the approved post with the disclosure visible before payment is released.
Practical steps include using platform-native compliance tools. Douyin’s “广告审核” (advertising review, guǎnggào shěnhé) tool allows brands to pre-upload content for automated check of the “广告” label; Xiaohongshu’s “蒲公英” (Dandelion, púgōngyīng) platform now blocks posts that lack disclosure before they can be published. For livestreams, brands should script and rehearse disclosure language with KOLs as a mandatory rehearsal step, not an afterthought. Finally, all foreign brands must maintain a compliance log that records: campaign date, KOL handle, disclosure format, platform audit result, and contract clause invoked—this log can be requested by SAMR during audits and is the first document they review.
Three Critical Pitfalls for Foreign Brands
Cost: A major US skincare brand was fined RMB 630,000 in 2024 when one of its top Douyin KOLs failed to label five consecutive videos.
Fix: Insert a compliance clause that requires KOL approval via the platform’s brand-partner tool—and verify every post with a screenshot before payment.
Cost: A Japanese electronics brand received a RMB 420,000 fine in March 2025 for gifting 30 KOLs new smartphones without labels, claiming it was “organic sampling.” SAMR ruled all gifted products with promotional intent require a label.
Fix: Classify any product sent to a KOL as a “commercial sample” (商业样品, shāngyè yàngpǐn) and require a “广告” label. Track all gifting in your compliance log.
Cost: A French luxury brand ran WeChat mini-program campaigns with English disclosure that read “Sponsored Content.” SAMR ruled that without the Chinese “广告” label, it violated the rules. Fine: RMB 310,000.
Fix: Use the exact Chinese phrase “广告” in Chinese characters, not symbols, not English, even if your brand targets bilingual consumers. Place it at the top of the post, not hidden in hashtags.
NEXT STEPS
- Audit your current influencer campaigns for compliance gaps. Review every active KOL contract and verify that disclosure language and platform tools are being used. Use our Influencer Compliance Audit Checklist to identify gaps before SAMR does.
- Update your KOL contract templates with mandatory compliance clauses. Start with our China KOL Contract Template for Foreign Brands, which includes SAMR-compliant disclosure, liability, and penalty provisions.
- Train your local team or ad agent on the new enforcement patterns. Book a Compliance Briefing Session with our team to walk through your current campaigns and identify high-risk content before your next audit cycle.
— China Gateway 360 —
Remote China market entry support, built around execution.
