2003/10/29 ad_regulate 1

Regulation of Children’s Regulation of Children’s Advertising in ChinaAdvertising in China

Kara Chan, Hong Kong Baptist University

James U McNeal, Peking University

November 7-8, 2003

Dunedin, New Zealand

2003/10/29 ad_regulate 2

Background

Adoption of One-child policy in 1979Adoption of One-child policy in 1979

Children as “little emperors/empresses”Children as “little emperors/empresses”

290 290 million children under the age of 14, in 2000, million children under the age of 14, in 2000, compared with 60 million people in entire UScompared with 60 million people in entire US

Urban Children’s spending=US$6.2 billion in 1999Urban Children’s spending=US$6.2 billion in 1999

Influenced the spending of parents and Influenced the spending of parents and grandparents of US$61 billiongrandparents of US$61 billion

Total market potential US$67 billionTotal market potential US$67 billion

Adoption of One-child policy in 1979Adoption of One-child policy in 1979

Children as “little emperors/empresses”Children as “little emperors/empresses”

290 290 million children under the age of 14, in 2000, million children under the age of 14, in 2000, compared with 60 million people in entire UScompared with 60 million people in entire US

Urban Children’s spending=US$6.2 billion in 1999Urban Children’s spending=US$6.2 billion in 1999

Influenced the spending of parents and Influenced the spending of parents and grandparents of US$61 billiongrandparents of US$61 billion

Total market potential US$67 billionTotal market potential US$67 billion

2003/10/29 ad_regulate 3

Advertising Law1982: Interim Regulations for Advertising Management

1987: Regulations for Advertising Management

1995: The first national law went into effect on February 1

2003/10/29 ad_regulate 4

Children’s advertising

Definition in the censorship standard:

“advertising of products to be used by children or adverting using children as models”

(State Administration for Industry and Commerce and State Planning Committee, 1993)

2003/10/29 ad_regulate 5

Standard of advertisements

Children’s advertisements would violate the standards if they:1. are harmful to children’s mental and physical health or moral standards

2. induce children to put pressure on parents to buy the advertised products

3. reduce children’s respect for their elders or friendly behavior

4. interrupt parents’ or elders’ education of their children

2003/10/29 ad_regulate 6

5. instill in children a sense of superiority or inferiority from owing or not owning an advertised product

6. use child models to demonstrate a product in a capacity exceeding that of an average child of that age

7. show acts that children should not be doing alone

8. cause children to act or behave badly

9. deceive children by using descriptions beyond the judgment capacity of children

10. use the names, the identities or images of teachers, educators, writers of children’s literature, or child celebrities to endorse products.

2003/10/29 ad_regulate 7

MethodologyDesk research of

newspaper, articles, journal papers and books

Personal interviewsAn advertising director working in an international advertising agency in Shanghai

An SAIC officer responsible for advertising censorship in Shanghai in October 2002

2003/10/29 ad_regulate 8

Controversial TV commercials targeting at children

Example 1: a Pharmaceutical commercial

“The child is sick; give him a shot…”“Oh, no, no.” The child refuses.“Give him medicine…” “Oh, no , no.” The child refuses again.“He doesn't like the pain or taste.”The frustrated mother begging the child. “Oh my dear, what

do you want?” An imported medicine appears and it solves the problem.

Violation of Article 8: It features the child as a spoiled emperor, demanding submission from the parents. It also portrays the parents in a passive and inadequate role.

2003/10/29 ad_regulate 9

Example 2: a Soft drink Commercial

A little boy lying in his mother’s arms, says “My grandpa is a manager, and my dad is a manager. When I grow up, I would like to be a manager, too.”

Violation of Article 8 It misleads children that using the product will enhance their intelligence and their future career. Ideologically incorrect Glorifying the managerial class carries undesirable capitalistic overtones.

2003/10/29 ad_regulate 10

‘Good’ and ‘cultural appropriate’ children’s advertisements

Example 1: An almond Drink commercial

A girl prepares the drink and serves it to her grandfather.

This commercial is good The girl shows respect and caring for the elderly in her family.

2003/10/29 ad_regulate 11

Example 2: De Beers, a multinational diamond distributor

A young boy places a ring made of grass on the finger of a young girl; then cuts to a scene where both of them have grown up. The young man is placing a diamond ring on the young lady’s finger on their wedding day.

The commercial was initially rejected It featured ‘puppy love’; children should focus their lives on education and family. After changing the opening shot to include a wide shot of a group of children playing under a tree, the TVC was accepted.

2003/10/29 ad_regulate 12

Commercial not approved on TV

Example :

A children’s food commercial featuring Santa Claus for Christmas greeting

This commercial is not approvedChristmas was not an official holiday in China and Santa was not considered as an appropriate celebrity figure for children due to its religious origin.

2003/10/29 ad_regulate 13

Advertising Censorship

According to the Advertising Law, the content of advertisements is to be censored prior to dissemination in the media by relevant administrative authorities-in-charge.

2003/10/29 ad_regulate 14

Organization structure of the censorship authorities

Provincial Administration ofIndustry and Commerce

Country Administration for Industry and Commerce

District Administration for Industry and Commerce

Advertising Censorship Section

Advertising Censorship Division

Advertising Censorship Department

Advertising Censorship Bureau

The state

State Administration for Industry and Commerce

2003/10/29 ad_regulate 15

Advertising auditors

Acts as internal auditors that help business establishments to enhance the understanding of specific requirements and interpretation of the Advertising Law

Plays minor roles in the censorship process and existed in name only

2003/10/29 ad_regulate 16

Advertising consultants

The China Advertising Association establishes an information consultant center that provides legal consultancy services for advertising agencies.

2003/10/29 ad_regulate 17

Media gatekeepers

People in the media sometimes act as the final gatekeepers in the censorship process. They can reject an ad even if the advertisement has obtained a certificate of approval from the national office of the China Advertising Association.

2003/10/29 ad_regulate 18

Perceived problems of the advertising censorship

The process is bureaucratic and extremely time consuming and costly.The ads agency people have been strongly critical of the subjective judgment involved in the censorship process because it has caused much stress.

2003/10/29 ad_regulate 19

illegal advertisements in 2000 by product category (N=66,824)

Electricalappliance3.1%Wines

2.1%

Medicine20.6%

Medicalservices8.9%

Food7.7%

Cosmetics2.3%

Others55.4%

2003/10/29 ad_regulate 20

illegal advertisements in 2000 by media (N= 66,824)

Others19.5%

Radio1.2%

Newspaper7.0%

Print29.4%

Outdoor38.5%

Magazines0.7%

Tele v i si o n3.7%

2003/10/29 ad_regulate 21

Self-regulation

Self-regulation is the recognition by the advertising industry (advertisers, agencies and the media) that advertising should comply to a set of ethical rules

It should be legal, decent, honest and trustful, prepared with a sense of social responsibility to the consumer and to society as a whole, and with due respect to the rules of fair competition

2003/10/29 ad_regulate 22

Conclusion

Advertising Law needs rooms for improvement :

1. A separate section to deal with children’s advertising

2. An unambiguous and well-defined advertising law to develop a healthy advertising industry