China’s New Rules On Internet Advertising

Specific vulnerabilities in users can also be exploited to target adverts, including those that are possibly harmful. Any measures to address harmful adverts incur costs and unless all competitors in the market face these costs, there is no incentive for a single business to act further. This is a coordination failure which in part stems from the fact that the current ASA regulation primarily covers advertisers – who as consumer-facing businesses are often driven by reputational incentives – rather than all businesses across the supply chain. This creates a regulatory gap which means that advertisers could effectively currently be held accountable for the role played by other actors in relation to placement and targeting of their adverts to consumers. Recognising the significant threat of fraudulent advertising, large social media platforms are taking steps to ensure fraudulent advertising is not appearing on their platforms. For example, Google stated that in 2020, … Read More

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