By Prei Dy, | March 17, 2017
China penalized vitamin giant Blackmores for misleading ad. (YouTube)
Blackmores, a vitamins giant, has been fined $69,000 by Chinese regulators for misleading advertising, after it claimed to be the number one supplement brand in Australia.
The brand was penalized after an ad, which appeared both in stores and online, was found to breach Chinese advertising regulations because of the claim. According to the Shanghai Administration for Industry and Commerce (AIC), Blackmores made claims that its products could treat ailments like cardiovascular disease and arthritis, something that is not allowed in China.
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According to Fairfax, the Blackmores breach has been revealed after a list of 11 companies that violated China's advertising regulations was released to state media in accordance to the country's Consumer Rights Day on March 15.
A spokesperson from Blackmores said on Thursday that Blackmoores "featured some marketing materials in our Pudong Airport pop-up store" in 2016. The spokesperson told SmartCompany that they were not aware that such wording was prohibited under China's advertising laws, adding that its ad used factually correct language that has previously been used across other international markets.
"At the time, there were uncertainties in the market about the new Advertising Law and we were unaware that language used was no longer allowed," the spokesperson explained.
However, the company said it quickly responded after having the issue brought to its attention by the country's Administration of Industry and Commerce body. Blackmores said it quickly removed the materials and online posts where they were referenced. And because of its swift action, its penalty was "reduced to the lowest level."
"Blackmores takes its obligations seriously, and since the investigation has strengthened its procedures and ensures all advertising claims are subject to legal review," the spokesperson noted.
Under China's new advertising law, updated in 2015, health food or vitamin companies are not allowed to make claims of treating or preventing diseases on its advertisements.
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