Livestreaming is the new hit channel for driving online sales in China, home to the world’s largest e-commerce market. Sales through live commerce are likely to more than double to 1 trillion yuan ($148 billion) this year, accounting for 9% to 10% of online sales, according to a forecast by CLSA.
On July 1, the China Advertising Association released the "Code of Conduct for Online Livestreaming Marketing," the first domestic guidelines for livestreaming marketing activities.
Here are some of the do’s and don’ts on live commerce in China according to the guidelines:
• Livestreamers should register truthful information, such as personal ID and other relevant information, with the livestreaming platforms.
• Do not produce illegal content. Any content that violates Chinese laws, such as that threatens social order, spreads rumors, or defames others, runs the risk of immediate punishment and blacklisting by the platforms or supervisory bodies.
• Do not use sexually suggestive, sexually provocative, or vulgar language that promotes obscenity, violence, bloodiness, cruelty, or terror.
• Do not promote smoking or engage in the disguised promotion of tobacco products (including e-cigarettes) at livestreaming events.
• Do not engage in any absurd or risky activities, especially where the dangerous action is likely to be imitated, and also refrain from conducting any other acts that violate social ethics.
• Livestreaming marketing should provide truthful and accurate disclosure of goods to protect consumers' rights. It should also establish sound after-sale consumer protection mechanisms under the law.
• Do not manipulate data. Livestreaming hosts and platforms are forbidden from falsifying transaction data and user evaluations. Nor should they use deceptive descriptions of their products to mislead consumers.
• Businesses selling pharmaceuticals, medical devices, health foods, and other goods with medicinal properties should obtain the relevant permits from authorities.
• Protect cybersecurity and personal information. The collection and use of users' personal data must comply with laws and administrative obligations, and be careful not to breach data privacy or leak confidential data to third-party services.
• Honor business ethics and fair play. Do not engage in activities that disrupt the order of market competition and harm other business operators through unfair competition.
• Protect intellectual property. Mechanisms for protecting intellectual property rights, trade secrets and other proprietary rights involving third parties should be established and honored.
• Do not conduct livestreaming in (i) places of national and public safety; (ii) places that affect the regular order of production and life in society; (iii) places that affect the everyday life of others.