Phone and Text Message Marketing Law in China

Mobile, including telemarketing and text message, is an important part of digital communications, prospect building, and customer management in China. It is one of the building blocks of a strong digital marketing strategy and a large percentage of the Chinese use mobile. If your company is going to use telemarketing or text message marketing, it is important to be sure that you understand the applicable rules and regulations that govern it.

What laws and regulations apply?

The Consumer Rights Protection Law (CRPL), the Decision on Strengthening Online Information Protection (Decision) and the Administrative Provisions on Short Message Services govern telemarketing and text message marketing in China.

How do I comply with the Decision on Strengthening Online Information Protection?

The Decision and the CRPL both require that all companies (advertisers) get consent to make marketing phone calls to consumers. Furthermore, companies cannot call consumers who have rejected such communications. China does not currently have a do-not-call registry.

How do I comply with the Administrative Provisions on Short Message Services?

Under the Administrative Provisions on Short Message Services (commonly known as “texts”) companies are prohibited from sending commercial communications to consumers without consent and also require that companies:

1. Comply with express requests from consumers not to send such communications;

2. Expressly disclose the identity and contact information of the advertiser in electronic advertising; and

3. Provide a way for consumers to refuse future electronic advertisements.

If consent is requested through SMS, the request must specify the type, frequency, and time limit of proposed SMS messages. No reply is considered a rejection, and the same or similar request SMS must not be sent again. SMS messages must contain a convenient and effective way to refuse the receipt of future SMS messages.

What are the risks of noncompliance?

Under the Consumer Rights Protection law, companies that infringe on a consumer’s personal data rights may be required to make corrections or forfeit related illegal income and could be given a warning or charged a fine of up to 10 times the illegal income. If there is no illegal income, the maximum fine is RMB 500,000. Under the Administrative Provisions on Short Message Services, violations may be penalized with a fine of up to RMB 30,000.