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Consumer groups decry fraudulent TV direct ads

(China Daily/Xinhua)
Updated: 2009-07-20 11:50

TV direct sales volume

According to the China TV Sales Research and Development Center, affiliated with the Beijing University of Posts and Telecommunications, TV direct sales accounted for 0.15 percent of China's total retail sales in 2008.

The figure for the United States was 8 percent, and it was more than 10 percent for the Republic of Korea.

Lack of public trust in the industry has hampered the platform's development in China, the report stated.

"TV sales have an enormous potential. What is missing is regulation," said Ye Maozhong, a brand management specialist.

Regulation of TV advertising involves several government departments and institutions.

Celebrity endorsers can become easy targets, industry observers said.

Last year in the midst of the melamine milk contamination scandal, Liu Guoliang, head coach of the National Table Tennis Team, apologized under media pressure for appearing in an ad for Yili milk products and offered to donate his earnings to the treatment of victims.

"Stars should be cautious about signing ad contracts. They should be held accountable for knowingly saying things that are not true," an industry observer said.

"But it is unfair to rebuke them for a government license or certificate obtained illegally and covertly by an advertiser. The check on such behavior must be imposed elsewhere," the observer said.

Stopping frauds

TV operators could effectively stop frauds if they stepped up the examination of advertisers' credentials and demanded strict compliance with standards, the observer said.

"Fraudulent TV ads are typically cases of negligence in enforcing the law," said Zong Shouyun, publicity and education director for the Jilin Consumers Association.

"The media should assume responsibility for all the losses caused by deceptive ads," Zong said.

Zhong Ping, deputy secretary general of the Changchun Consumers Association, said swindlers should be severely punished.

"Let them pay a heavy price, and cheating companies will disappear," Zhong said.

At a public forum held in June in Shanghai, Ren Qian, a deputy division chief with the State Administration of Radio, Film and Television, said his agency was working with the State Administration for Industry and Commerce on new regulations to standardize the operation of TV direct sales.

"Requirements on the advertiser's entry qualifications and airing times will be more specific. Rule-violating TV operators may lose their operating licenses," Ren said.

Television stations could take their cue from the Internet, he said.

One example is the Taobao website's credit appraisal system and third-party payment mechanism, which have been effective in preventing fraud, Ren said.

Zong of the Jilin Consumers Association said that governments could sponsor publicity campaigns to educate rural consumers.

Consumer Song can't remember which television channel aired the advertisement to which he responded.

Song said he has given up trying to recover his money. But, he added, he's unlikely to buy anything via TV anytime soon.

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