A2 milk powder was fined one hundred thousand yuan in China. (photo by Australian Financial Review)
A2 milk powder was fined one hundred thousand yuan for violating the ban on the use of child images for propaganda in China.
China's market regulator last week announced 30 cases of typical false and illegal Internet advertising in 2018, according to Chinese media reports. Among them, New Zealand online celebrity purchasing agent brand A2 Chinese distributor was fined one hundred thousand yuan for using the image of a minor under the age of 10 for advertising campaigns, violating the relevant provisions of the advertising law.
In an effort to promote its distribution of A2 milk powder, Hu Ke, an entertainer, was invited to participate in its brand webcasts campaign and to advertise with the image of Hu Ke and his son Anji, according to the announcement. After the company's official website, social app official account, official Weibo and other self-media used Hu and Anji's name and image for its products, and Hu's son when the company organized events and advertising, the actual age of under 10 years of age. The company's actions violate the provisions of Article 38 of the Advertising Law of the people's Republic of China. According to Article 58 of the Advertising Law of the people's Republic of China, in June 2018, the General Inspection team of the Shanghai Municipal Bureau of Industry and Commerce imposed an administrative penalty, ordered the publication of illegal advertisements to stop, and imposed a fine of one hundred thousand yuan.
The Australian Financial Review reported that A2 took a fancy to the huge social media influence of Hook and Angie two years ago and invited them to be "brand ambassadors" and paid both mothers and sons. Companies hired brand ambassadors to advertise their products to consumers in China, but A2 was believed to have no idea that China's Advertising Law prohibited the use of images of children under the age of 10 for advertising.
A2 confirmed the fine to the Australian Financial Review, and said in the statement, "A2 Dairy Company and the State Administration of Market Supervision and Administration of China held consultations on advertising matters and reached a mutually satisfactory solution." The company agreed to pay one hundred thousand yuan ($20, 000) to resolve the matter. "
Market demand for A2 baby formula is reported to be strong, making the company's shares one of the best-performing shares on the Australian Stock Exchange, rising 165 percent last year.
