E-commerce Platform Legal Liability and Advertising Law Compliance Essentials

E-commerce industry regulation is increasingly strict. Platform operators and merchants must understand compliance requirements under the E-Commerce Law, Advertising Law, and Consumer Rights Protection Law.

1. E-commerce Platform Operator Liability

E-commerce platform operators must fulfill: identity verification and registration obligations for on-platform operators; upon discovering illegal acts by on-platform operators, take necessary measures per law and report; for goods/services related to consumer life and health, failure to verify on-platform operator qualifications or fulfill consumer safety obligations resulting in harm entails corresponding liability. If the platform cannot provide the seller's true name, address, and valid contact information, consumers may seek compensation from the platform.

2. Advertising Law Compliance Essentials

Advertisements must not contain false or misleading content. Absolute terms such as "national-level," "highest-grade," "best" are prohibited (extreme words). Special industry advertising rules apply to medical, pharmaceutical, medical device, health food, education/training, real estate, finance, etc. Data, statistics, and survey results used in advertising must be truthful, accurate, and sourced. Endorsers may not recommend or certify products they have not used or services they have not received.

3. Common Violations

Common violations: using extreme words ("best," "No.1," "top," "lowest on the entire network," etc.), false advertising (exaggerated efficacy, fabricated sales, fake reviews), price fraud (fictitious original prices, false discounts), unfair competition (fake orders/reviews, malicious negative reviews), IP infringement (image theft, counterfeit sales), and consumer personal information leakage. Illegal advertising may incur fines of 3–5 times advertising costs (RMB 200,000–1,000,000 if incalculable), with business license revocation for serious cases.

4. Livestream Selling Compliance

In livestream selling, livestream room operators and livestream marketers must comply: no false advertising, no deceiving or misleading consumers; product/service introductions must be truthful and accurate; content constituting advertising must be clearly marked "advertisement"; selling food, cosmetics, medical devices, etc., requires corresponding qualifications; livestream marketing platforms must establish sound product and service review mechanisms. Merchants are advised to establish an advertising content review process and use advertising compliance detection tools to avoid extreme words and false advertising.