A Shanghai company, Shanghai Marilai Industrial Co., Ltd., was recently penalized for making misleading claims about their product “KI polysaccharides.” These claims, advertised through various channels, included the ability to “deeply detoxify the liver” and “regenerate liver cells,” promising unrealistic benefits for chronic liver conditions.
The company further misled consumers by falsely claiming patent rights and labeling their products as “organic” without proper certification. These actions violated several advertising and organic product certification regulations in China.
The Penalty
The Market Supervision and Administration Bureau of Shanghai Municipal Songjiang District imposed a fine of RMB 500,000 yuan (around USD 70,600) on the company. Additionally, they were ordered to cease all dissemination of the illegal advertisements.
Green Trademarks in China
The article then shifts to discuss the increasing difficulty of registering trademarks containing generic terms like “green” or “organic” in China. However, it highlights the use of certification marks as a viable alternative.
Certification Marks Explained
Certification marks signify that a product has undergone independent evaluation and meets specific standards set by a qualified organization. These marks can help overcome objections related to potentially deceptive or descriptive terms used in the trademark itself.
Importance of Compliance
The process of obtaining a certification mark involves adhering to strict regulations and standards. China enforces various laws to ensure that trademarks accurately reflect the environmental benefits of products and services. This protects consumers from misleading claims and promotes fair competition within the market.
Recommendations
If you haven’t filed any Intellectual Property officially, please do not simply share it on your social media channels as it will be deemed as misleading the public and you will likely face a heavy penalty from the law enforcement while at the same time loosing your goodwill and reputation in the market.
Source: http://m.gxfin.com/article/finance/xf/default/2019-12-14/5149168.html
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