Risky Business - Liability For False Or Misleading Advertising Under PRC Law

Introduction

The past few years have witnessed the rapid growth of cross border e-commerce in China. This growth has resulted from a number of factors including, improved technology, a rising middle class in China and the Chinese government's encouragement of bonded zones for the efficient importation of goods. Recent estimates put the value of e-commerce business at more than US$3 trillion in 2015.

Manufacturers advertising and selling their products in China, whether via an e-commerce platform or by more traditional means, need to be aware that there are quite strict laws in China prohibiting false or misleading advertising.

This article offers an overview of the position under Chinese law in respect of misleading representations and the attendant risks for traders.