Advertising Fines in China Highlight Compliance Rules for Auto Brands
Geely Automobile Sales Co., Ltd. faced a substantial penalty when regulators found the company had used advertising slogans that breached national standards. The fine amounted to 600,000 yuan, a figure that reflects the severity with which authorities treat misrepresentative language in promotional materials. In China, terms such as national level, top level, and best are strictly regulated, and derivatives of these phrases are prohibited under paragraph 3 of article 9 of the Advertising Law. The purpose behind these rules is to prevent overstated claims and to maintain fair competition within the market. This enforcement underscores the idea that advertisers must rely on verifiable attributes rather than absolutes in their messaging (Source: Advertising Law of the People’s Republic of China; Official Regulatory Notes).
The penalties for advertising violations in this jurisdiction typically range from 200,000 yuan to one million yuan. In addition, offending companies may face a one-year ban on their advertising submissions, as audit applications and related promotional materials could be suspended during that period. This combination of fines and temporary ad bans serves as a strong incentive for advertisers to align their campaigns with the spirit of the law, ensuring that messages remain accurate, specific, and substantiated (Source: PRC Advertising Law Provisions).
Geely is not a first-time offender in this area. Earlier in the year, the company was subjected to penalties for including in ads claims about goods or services from other manufacturers. The regulatory action reflects ongoing vigilance by authorities to curb misleading statements and protect consumers from inflated representations in marketing campaigns. The case illustrates how ad rules are applied across brands and the consequences of non-compliance (Source: Administrative Guidance and Enforcement Updates).
There have been other notable incidents involving false or exaggerated claims in the auto industry. On May 12, 2022, Geely published an advertisement on its official WeChat account comparing its hybrid technologies to those of Honda and Toyota. The authorities determined that this post depreciated the value of competing brands by implying superiority without substantiation. As a result, Geely was instructed to halt the advertisement and fined 10,000 yuan. This incident serves as a reminder that comparative marketing requires careful substantiation and clear, verifiable comparisons (Source: Regulatory Action Summary).
Instances of aggressive marketing language are not isolated to Geely. Tesla Motors (Beijing) Co., Ltd. also faced penalties during the same period for similar issues. A fine of 50,000 yuan was issued in connection with claims that suggested superiority in ways not adequately supported by evidence. The takeaway for all automakers is that language implying supremacy or national-level status must be backed by credible data and policy-compliant phrasing. This approach helps ensure a level playing field for brands while protecting consumer trust (Source: Industry Compliance Briefs).