1. 2003/10/29ad_regulate1 Regulation of Children’s Advertising in China Kara Chan, Hong Kong Baptist University James U McNeal, Peking University November 7-8, 2003 Dunedin, New Zealand

2. 2003/10/29ad_regulate2 Background Adoption of One-child policy in 1979 Children as “little emperors/empresses” 290 million children under the age of 14, in 2000, compared with 60 million people in entire US Urban Children’s spending=US$6.2 billion in 1999 Influenced the spending of parents and grandparents of US$61 billion Total market potential US$67 billion Adoption of One-child policy in 1979 Children as “little emperors/empresses” 290 million children under the age of 14, in 2000, compared with 60 million people in entire US Urban Children’s spending=US$6.2 billion in 1999 Influenced the spending of parents and grandparents of US$61 billion Total market potential US$67 billion

3. 2003/10/29ad_regulate3 Advertising Law 1982: Interim Regulations for Advertising Management 1987: Regulations for Advertising Management 1995: The first national law went into effect on February 1

4. 2003/10/29ad_regulate4 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)

5. 2003/10/29ad_regulate5 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

6. 2003/10/29ad_regulate6 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.

7. 2003/10/29ad_regulate7 Methodology Desk research of newspaper, articles, journal papers and books Personal interviews An advertising director working in an international advertising agency in Shanghai An SAIC officer responsible for advertising censorship in Shanghai in October 2002

8. 2003/10/29ad_regulate8 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.

9. 2003/10/29ad_regulate9 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.

10. 2003/10/29ad_regulate10 ‘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.

11. 2003/10/29ad_regulate11 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.

12. 2003/10/29ad_regulate12 Commercial not approved on TV Example : A children’s food commercial featuring Santa Claus for Christmas greeting This commercial is not approved Christmas was not an official holiday in China and Santa was not considered as an appropriate celebrity figure for children due to its religious origin.

13. 2003/10/29ad_regulate13 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.

14. 2003/10/29ad_regulate14 Organization structure of the censorship authorities Provincial Administration of Industry 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

15. 2003/10/29ad_regulate15 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

16. 2003/10/29ad_regulate16 Advertising consultants The China Advertising Association establishes an information consultant center that provides legal consultancy services for advertising agencies.

17. 2003/10/29ad_regulate17 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.

18. 2003/10/29ad_regulate18 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.

19. 2003/10/29ad_regulate19 illegal advertisements in 2000 by product category (N=66,824)

20. 2003/10/29ad_regulate20 illegal advertisements in 2000 by media (N= 66,824)

21. 2003/10/29ad_regulate21 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

22. 2003/10/29ad_regulate22 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