Philips was fined 795,000 yuan by the Shanghai municipal Regulatory Bureau for advertising in kindergartens


Source: China China finance and economics, April 1 (reporter wen-hsin chung), according to the Shanghai market supervision administration website recently, philips (China) investment co., LTD., as the primary and secondary schools, kindergartens or within the use of items related to the primary and middle school students, children advertising, market supervision and administration of Shanghai fine of $795000.Screenshot source:According to the administrative penalty decision on the website of the Shanghai Municipal Administration for Market Supervision, no. 322021000326 of the General Office of Shanghai Stock Market Supervision (2022), during the investigation of Shanghai Youyi Information Technology Co., LTD. (hereinafter referred to as “Youyi Company”) violating the Advertising Law, it was found that the illegal advertisements involved were commissioned by the parties concerned.Its behavior is suspected of violating the relevant provisions of the Advertising Law of the People’s Republic of China.In order to further find out the facts of the case, the Shanghai Municipal Administration for Market Supervision placed a case on file and investigated the party concerned.In the course of investigation, The Shanghai Municipal Administration for Market Supervision collected relevant evidence materials according to law and made interrogation records.During the period, no compulsory administrative measures have been taken against the parties.After investigation, the party is engaged in philips brand product distribution business.On December 10, 2020, in order to promote and publicize Philips mask products, the party entrusted Zeke (Shanghai) Culture and Technology Development Co., LTD. (hereinafter referred to as “Zeke Company”) to carry out multi-channel promotion and marketing in kindergartens and other kindergartens.Subsequently, Zecke company entrusted youyi Company to carry out the promotion and marketing of the kindergarten channel, and Youyi Company entrusted Shanghai Xiyue Media Technology Co., LTD. (hereinafter referred to as “Xiyue Company”) to implement the above advertising activities in the kindergarten channel.Since December 29, 2020, Xiyue Company has published the main contents of “flu, allergy, asthma, air burst…” in the electronic bulletin board light boxes of 55 kindergartens in Shanghai (including 5 free spots).Don’t panic, PHILIPS covers you, “PHILIPS”, “Sweep taobao to unlock new black technology” and other PHILIPS mask advertisements will be on the shelves until January 4, 2021;At the same time, in order to coordinate with the promotion and publicity of the light box advertisement, 20,000 promotional picture books containing philips brand logo and qr code of commodity shopping were distributed to children in the form of kindergarten themed classes.In addition, the above light box advertising screen is designed by the parties themselves, commissioned by Xiyue printing production company;The above philips mask picture book was commissioned by Xiyue and printed by Youyi.By January 8, 2021, Xiyue company will remove all of the above light box advertisements.The above advertising expenses shall be calculated on the basis of actual publishing conditions and other factors, totaling RMB 795,000.00.On March 11, 2022, Shanghai Municipal Administration for Market Supervision served the Notice of Administrative Penalty Hearing to the party in accordance with the law (Shanghai Municipal Superintendent-General Hearing [2022] No. 322021000326), informed the content, facts, reasons and basis of the proposed administrative penalty, and informed the party that within five working days from the date of receiving the notice,They have the right to make representations, plead their case and demand a hearing.The party concerned shall, within five working days from the date of receiving the notice of Hearing of Administrative Penalty mentioned above, not submit a statement, defense or request for holding a hearing to the Shanghai Municipal Administration for Market Supervision.According to market supervision and administration of Shanghai, the party to promote the sale of philips mask products, design and advertising images, commissioning and publishing advertisements and the execution within kindergarten theme class activities, etc., in “the advertisement law of the People’s Republic of China” in the second paragraph of article 2 of “advertisers” referred to in this law means to promote the products or services,The provisions of natural persons, legal persons or other organizations that design, produce or publish advertisements by themselves or entrust others “shall be the advertisers of the above-mentioned advertisements.The parties to the ads in the kindergarten behavior, violation of the law of the People’s Republic of China advertisement law “article 39” shall not carry out advertising activities within in primary and secondary schools, kindergartens, may make use of primary and middle school students and young children teaching materials, teaching materials, teaching AIDS, school uniforms, exercise books, stationery, school bus, release or disguised advertisements, but except for public service ads “of the act,Constitute the act of releasing commercial advertisements in kindergartens.In view of the above advertising period is shorter, and actively cooperate with the investigation of the plot, the parties according to the advertisement law of the People’s Republic of China, the first paragraph of article 58 of the first (12) “has one of the following ACTS, the market supervision and regulation department shall be ordered to stop the ads, shall be ordered to eliminate impact advertisers in the corresponding scope, more than twice and less than three times the advertising expenses of fines,If advertising expenses cannot be calculated or are obviously too low, they shall be fined between RMB 100,000 yuan and RMB 200,000 yuan;If the circumstances are serious, they shall be fined between three times and five times the advertising expenses; if the advertising expenses cannot be calculated or are obviously too low, they shall be fined between 200,000 yuan and one million yuan, their business licenses may be revoked, the advertising examination organs shall revoke the documents of approval for the examination of advertisements, and their applications for examination of advertisements shall not be accepted for one year:…(12) of the provisions of article 39 of this law, within the primary and secondary schools, kindergartens or use items related to the primary and middle school students, children “the provisions of the advertisement, the parties to cease his illegal advertising, eliminate the effects in the corresponding scope, and determine punishment on the parties as follows: advertising costs double fines, suhuang nine will yuan.According to tianyan information, Philips (China) Investment Co., Ltd. was established on August 8, 1990, and its legal representative is KWOK WAI ANDY HO, with registered capital of us $56.2 million. It is a wholly foreign-owned enterprise.Its parent company, Philips Electronics China Co., LTD., is affiliated to Royal Philips Electronics Co., LTD., currently responsible for all the investment and development of Philips in China, headquartered in Eindhoven, the Netherlands.

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