Zhongxin Finance, February 10 (Reporter Xie Yiguan) According to the Shanghai Municipal Market Supervision and Administration Bureau, Estee Lauder (Shanghai) Trading Co., Ltd. was recently fined 2,381,671 yuan for publishing false advertisements.

Screenshot from Shanghai Market Supervision Bureau.

  According to the administrative penalty decision, from October 2019 to December 19, 2019, in order to promote the special moisturizing skin repairing essence product, the parties released the main content through Dragon TV, official website and other channels to the public as "Youth Index +77" %” and “soft+17% smooth+20% translucent+15%” and other video or print advertisements indicating the efficacy of the product, with small print.

The above advertisements were designed, produced, represented and published by the parties themselves or entrusted by the parties, with a total advertising cost of RMB 2,381,671.

  It was also found that the above advertisement content was based on clinical reports issued by a third-party testing laboratory entrusted by the parties.

After verifying the clinical report, it is found that the "Youth Index + 77%", "Soft + 17% Smooth + 20% Translucent + 15%" and other effects advertised in the above advertisements are for samples of different ages and under certain restrictions. , The research data obtained with the use of sunscreen products, and the party refers to the overall concept of "young" with the one-sided index of the recovery of the number of skin metabolites.

  According to the expert demonstration meeting and visiting professional institutions and professionals, the recovery of the number of skin metabolites is not equivalent to the improvement of skin youth, and the age of the test sample has an impact on skin metabolites, softness, smoothness, and radiance. The degree of translucency has a greater impact, and the older the age, the more obvious the improvement effect of the skin condition.

At the same time, the results of the consumer survey showed that the small-print labels in the advertisements involved were not enough to make consumers fully aware of the true meaning and preconditions of the efficacy of the relevant products, and the content of the advertisements had a substantial impact on consumers' purchase behavior.

  The above facts mainly include a copy of the party's business license, a copy of the legal representative's identity certificate, a video advertisement CD-ROM, screenshots of advertisements, clinical reports, minutes of expert demonstration meetings, consumer survey reports, advertisement broadcasting contracts, advertisement broadcasting comparison reports and Questionnaires and other evidence materials shall be used to prove the facts, and the facts are clear and the evidence is conclusive.

  The Shanghai Municipal Administration for Market Regulation held that the above-mentioned acts of the parties violated the provisions of Article 4(1) and Article 28(1) and 2(2) of the Advertising Law of the People's Republic of China.

  According to Article 55, Paragraph 1 of the Advertising Law of the People's Republic of China and Article 32, Paragraph 1 of the Administrative Punishment Law of the People's Republic of China, the parties are ordered to stop publishing illegal advertisements and eliminate the impact within the corresponding scope. And it was decided to impose a fine of double the advertising costs, totaling 2.381671 million yuan.

  A reporter from Zhongxin Finance and Economics found that in June 2021, Estee Lauder (Shanghai) Trading Co., Ltd. was fined 400,000 yuan by the Jing'an District Market Supervision Bureau of Shanghai for false or misleading business promotions.

  It is worth mentioning that recently, Estee Lauder also announced its results for the three months ended December 31, 2021.

The results show that in the three months ended December 31, 2021, Estee Lauder achieved net sales of US$5.539 billion, a year-on-year increase of 14.1%; net profit of US$1.09 billion, a year-on-year increase of 24.6%.

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