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China's Advertising Law: The 9 Categories of Prohibited Words That Can Shut Down Your Business

kuanghs — Sat, 16 May 2026 17:36:24 +0000

China's Advertising Law: The 9 Categories of Prohibited Words That Can Shut Down Your Business

A Single Word Can Cost You ¥200,000

In 2024, a Chinese e-commerce seller used "全网最低价" (lowest price on the internet) in their product title. The market supervision bureau fined them ¥200,000 under China's Advertising Law Article 9.

One word. ¥200,000 fine. Product delisted. Seller account penalized.

This is not unusual. China's Advertising Law is one of the most strictly enforced in the world, and the penalties are severe.

The 9 Categories of Prohibited Words

1. Absolute Claims (绝对化用语)

Prohibited: 最, 第一, 唯一, 顶级, 极品, 100%, 绝不, 首选

Examples:

❌ "最好" (best) → Article 9, Item 3
❌ "销量第一" (sales #1) → Article 9, Item 3
❌ "唯一选择" (only choice) → Article 9, Item 3

Sneaky variants that are ALSO illegal:

❌ "遥遥领先" (far ahead) → implies #1
❌ "行业标杆" (industry benchmark) → implies top
❌ "零差评" (zero negative reviews) → implies absolute

2. Authority Claims (权威性暗示)

Prohibited: 国家级, 特供, 专供, 免检

❌ "国家级认证" → Article 9, Item 2
❌ "特供产品" → Article 9, Item 2

3. False Promises (虚假承诺)

Prohibited: 包治百病, 零风险, 100%有效

4. Inducement Without Basis

Prohibited: 限时仅剩, 立即抢购 (without real basis)

5-9. Superstitious, Discriminatory, Environmental, Patent Without Number, Fabricated Honors

Each category has specific prohibited terms and legal citations (see the skill for full details).

Category-Specific Restrictions: The Hidden Traps

Healthcare/Pharmaceuticals

❌ Cannot mention cure rates or effectiveness rates
❌ Cannot use doctor or hospital endorsements
❌ Prescription drugs: NO advertising in mass media

Health Supplements

❌ Cannot claim treatment functions
✅ MUST include: "本品不能代替药物"

Finance/Investment

❌ Cannot promise returns
✅ MUST include risk warning

Cosmetics

❌ Cannot claim medical effects
❌ "药妆" → prohibited term

Education

❌ Cannot promise pass rates

Real Estate

❌ Cannot promise value appreciation
❌ Must state both gross and net area

The New Rules: Live Streaming & Social Media

Live Streaming

Must clearly mark content as advertising
Streamers must have actually used the product

Seeding/Soft Ads

✅ MUST mark as "广告" or "推广"
❌ Unmarked paid recommendations → violation

How to Check Your Content

clawhub install cn-advertising-compliance

This OpenClaw skill runs a 4-step compliance check on any advertising copy, product description, or marketing material:

Prohibited word screening — scans for all 9 categories
Category-specific restrictions — checks based on your product type
Format compliance — verifies advertising labels, endorsement rules
Platform requirements — checks against specific platform rules

The Full Compliance Suite

cn-business-compliance-check — General China legal compliance
cn-ecommerce-compliance — Cross-border e-commerce compliance
cn-advertising-compliance — China advertising law compliance

clawhub install cn-business-compliance-check
clawhub install cn-ecommerce-compliance
clawhub install cn-advertising-compliance

The Bottom Line

In China's advertising landscape, ignorance of the law is not just costly — it's existential. One prohibited word can mean a ¥200,000 fine, product delisting, and account suspension.

The safest ad is the one that says exactly what the product does — nothing more, nothing less.

All three skills are open-source under MIT-0 license. Install from ClawHub.

Cross-Border E-Commerce Compliance: A Survival Guide for Chinese Sellers Going Global

kuanghs — Sat, 16 May 2026 17:34:44 +0000

Cross-Border E-Commerce Compliance: A Survival Guide for Chinese Sellers Going Global

The $100,000 Mistake

A Chinese seller shipped 10,000 LED lamps to Amazon US without FCC certification. Result: product recall, $50,000 in lost inventory, $30,000 in Amazon penalties, and a suspended seller account.

This isn't a rare story. Every month, hundreds of Chinese sellers lose money — not because their products are bad, but because they don't understand compliance.

Five Dimensions You Must Check Before Selling Overseas

1. Product Certification

Every market has mandatory product certifications. Missing one means your product can't legally be sold.

Market	Key Certifications	Common Pitfalls
EU	CE, REACH, WEEE, EPR	Selling without CE mark → recall + fines
US	FCC, FDA, UL, CPC	No FCC for wireless devices → Amazon blocks listing
UK	UKCA, UK REACH	Still using CE after Brexit transition → non-compliant
Japan	PSE, MIC	Wrong PSE category → customs rejection
Southeast Asia	TISI, SNI, SIRIM	Each country has different requirements

Key rule: If your product category requires certification, you MUST obtain it before listing. No shortcuts.

2. Tax Compliance

VAT/GST is the #1 tax trap for cross-border sellers.

EU VAT triggers:

Any inventory in EU (FBA, overseas warehouse) → must register VAT in that country
Remote sales > €10,000/year across EU → register or use OSS
Missing VAT registration → back taxes + penalties + platform account freeze

US Sales Tax:

Post-Wayfair (2018): economic nexus replaces physical presence
Most states: $100,000 in sales or 200 transactions triggers registration
Marketplace facilitators (Amazon) collect tax for you — but independent sites don't

Critical mistake: "I don't have a warehouse there, so I don't need to register" → Wrong. Remote sales thresholds apply.

3. Data Protection

If your store collects any customer data (name, email, address), you're subject to local data protection laws.

Regulation	Market	Maximum Penalty
GDPR	EU	4% of global revenue or €20M
CCPA/CPRA	California	$7,500 per intentional violation
PIPA	South Korea	Up to 5% of revenue
PDPA	Thailand/Singapore	Varies by jurisdiction

Practical steps:

Publish a privacy policy
Obtain consent before collecting data
Provide opt-out mechanisms
Don't transfer data overseas without adequate safeguards

4. Intellectual Property

IP infringement is the fastest way to get your store shut down.

Before entering any market:

Search trademark databases (USPTO, EUIPO, JPO)
Check for relevant patents (Google Patents, Espacenet)
Don't use others' product images without permission
Don't sell products that look like branded items

Amazon's IP policy: One valid complaint → listing suspended. Three complaints → account terminated.

5. Platform Rules

Each platform has its own compliance requirements that go beyond legal minimums.

Platform	Key Rules	Common Violations
Amazon	No fake reviews, no account linking, proper FBA labeling	Buying reviews, running multiple accounts
Shopify	Payment compliance, product policy	Selling restricted items
TikTok Shop	Content compliance, localization	Misleading claims in videos
Temu/Shein	Price compliance, quality standards	Fake discounts

How to Use the Compliance Skill

clawhub install cn-ecommerce-compliance

This OpenClaw skill walks you through all five dimensions before you launch in any market. It generates a structured compliance report showing exactly what you need to fix.

The Compliance Product Matrix

For comprehensive coverage, install the full suite:

cn-business-compliance-check — General China legal compliance (red lines, grey zones, revenue transparency)
cn-ecommerce-compliance — Cross-border e-commerce compliance (certifications, tax, data, IP, platform rules)
cn-advertising-compliance — China advertising law compliance (prohibited words, category restrictions, live-streaming rules)

clawhub install cn-business-compliance-check
clawhub install cn-ecommerce-compliance
clawhub install cn-advertising-compliance

The Bottom Line

Compliance isn't a cost — it's an investment in survival. The sellers who last aren't the ones who skip certifications to save $5,000. They're the ones who invest $5,000 in compliance to avoid losing $100,000.

Every dollar spent on compliance saves ten dollars in penalties.

All three skills are open-source under MIT-0 license. Install from ClawHub.

Building a Compliance-First AI Agent: Why Your Business Bot Needs a Legal Red Line

kuanghs — Sat, 16 May 2026 17:06:23 +0000

Building a Compliance-First AI Agent: Why Your Business Bot Needs a Legal Red Line

Every day, thousands of AI agents are deployed to automate business tasks — from market research to content creation to financial analysis. But here's the uncomfortable truth: most of them have zero compliance guardrails.

An AI agent that can execute business strategies without checking legality is like a car without brakes. It'll go fast — until it crashes.

Why Compliance-First Matters

In China's regulatory environment, the stakes are particularly high:

Illegal fundraising (非法集资): Promising high returns to the public without proper licensing — Criminal Law Article 176
Personal data violations: Collecting user data without consent — 50+ records of sensitive info is enough for criminal charges
False advertising: Even "harmless" exaggeration in product descriptions can trigger the Anti-Unfair Competition Law

These aren't theoretical risks. They're real enforcement actions happening every month.

The Three-Layer Filter Approach

I built cn-business-compliance-check — an OpenClaw skill that runs any business strategy through three layers before execution:

Layer 1: Red Line Screening

A hard blocklist of 10 absolutely prohibited domains (financial crimes, cybercrime, privacy violations, IP infringement, etc.). Hit any one → immediate stop.

Layer 2: Operational Compliance Check

Does the strategy require special licenses? Does it involve personal data? Automated operations? Content publishing? Each item gets checked against regulatory requirements.

Layer 3: Revenue Transparency Assessment

Is the revenue source clear and legal? Does the model require hiding fees from users? Does it show Ponzi-scheme characteristics? Abnormally high returns (>20% monthly) with opaque models get flagged.

Grey Zones: Where Most Agents Fail

Not everything is black and white. The skill classifies grey areas into three tiers:

A-class (High risk): Opaque revenue models, fake identity operations, hidden transaction paths → Strong advise against
B-class (Medium risk): New business models without clear legal precedent, cross-border compliance → Requires user confirmation
C-class (Low risk): Tax filing reminders, platform policy changes → Proceed with awareness

Key principle: Grey zone ≠ Green light. Default to pause.

Circuit Breaker: When to Stop Everything

The skill includes a fuse mechanism:

2 grey-zone warnings in one day → Enter safe mode, pause all new strategy exploration
1 A-class warning in one day → Immediately pause related strategies
5 grey-zone warnings in 7 days → Recommend full compliance review

Real-World Examples

Strategy	Layer 1	Layer 2	Layer 3	Verdict
Writing tech blogs for ad revenue	✅	✅	✅	✅ Pass
Ghost-writing academic papers	✅	⚠️ Academic integrity	✅	⚠️ Grey zone
Building a P2P lending platform	❌ Illegal fundraising	—	—	❌ Prohibited
AI-generated bulk content for traffic	✅	⚠️ Automated ops	⚠️ Quality concerns	⚠️ High risk

How to Use It

clawhub install cn-business-compliance-check

Once installed, your OpenClaw agent will automatically run compliance checks before executing any business strategy. No configuration needed — it works out of the box.

The Bigger Picture

As AI agents become more autonomous, compliance isn't optional — it's survival infrastructure. The agents that last won't be the fastest or the smartest. They'll be the ones that know when to stop.

Legal money is earned slowly, but you sleep soundly.

cn-business-compliance-check is open-source under MIT-0 license. Install it from ClawHub.