The Shanghai Municipal Administration for Industry and Commerce recently released a false illegal advertisement No. 1 in 2017, showing that the Australian health care product (Blackmores) China Corporation Jiaxian (Shanghai) Trading Co., Ltd (hereinafter referred to as "Jiaxian") is in the store. Advertisements in the official WeChat account were fined three hundred and forty six thousand five hundred and ninety nine yuan for illegal publicity.
According to the announcement, the company`s advertisements for nutritional supplements belonging to ordinary foods contain food or major ingredients of Aojiapo that can prevent and treat related diseases, such as "treatment of cardio-cerebrovascular diseases, auxiliary treatment of adult arthritis", and other terms such as "treatment of cardio-cerebrovascular diseases, adjunct treatment of adult arthritis", At the same time, it declared that "Australian Jiapao is Australia`s No. 1 dietary nutrition supplement brand", which constitutes illegal advertising and illegal use of prohibited language, and was fined three hundred and forty six thousand five hundred and ninety nine yuan in accordance with the law.
According to the new Law on Advertising, which came into effect on September 1, 2015, enterprises are not allowed to include some absolute guarantees such as efficacy and safety in product advertisements; they cannot involve the preventive function of diseases; they cannot contain essential supplies that are indicative of nature. In addition, the new Law on Advertising significantly increased the amount of punishment. For the limit term punishment, from the past back one compensate for three into the present fine of two hundred thousand yuan to start, the maximum limit of 1 million yuan.
The rise of cross-border e-commerce has led to a number of overseas brands, established in 1930 as a popular product on many cross-border e-commerce platforms. In December 2014, the company established a wholly-owned subsidiary in Shanghai, Jialong, which is responsible for market development and brand building in China.
Sales in the second half of 2015 were A $341 million, up 65 percent from A $206.4 million in the same period a year ago, according to the results. The group`s after-tax profit was A $48.3 million, up 160% year-on-year. Sales to retailers are supported by Chinese tourists and businessmen, according to the analysis. The sharp growth was not sustained, with AJB sales down 5.7 percent in the second half of 2016 and net profit down 41 percent.
