On The Study Of Corrective Advertising In China

In China, corrective advertising is a formal injunction in regulating perceptive advertising. However, corrective advertising injunction is rarely used, which is abnormal. After detailed studies, we find that the article37of Advertisements Law of the People’s Republic of China, the articlel8Implementation on Rules for the Regulation on the Administration of Advertising and the article19of Detailed Implementation Rules for the Regulation on the Administration of Advert ising build the corrective advertising institution of China. The problem is that the administration of advertising in Chinese government replaces this formal regulation with a more practical but lighter one, which indicates that the administrations of advertising in China are constrained with limited resources such as the ability in acquiring information of perceptive advertising. The practitioner of institution changes to adapt the very specific constraint conditions of China’s economic and society.The fatal problems of regulating deceptive advertising is that there is a great tense among the enormous deceptive advertising amount, the limited regulating power of the administration and the limited information acquiring ability. The article37of Advertisements Law of the People’s Republic of China sets a high standard for the corrective advertising institution of China, however, the limited regulating power of the administration makes this institution unenforceable. It is the great tense among the enormous deceptive advertising amount, the limited regulating power of the administration and the limited information acquiring ability that makes the institution unenforceable. The effective institution requires powerful information acquiring ability, abundant economic resources and so on. To make the combination of low probability of punishment and high standard of punishment works, the administration needs to have a low informational cost of acquiring the fine. We find that improving the power and resources of the advertising administration is the fundamental way.In the aspect of regulating deceptive adverting, the Draft of Advertisements Law of the People’s Republic of China sets a high standard, which is tougher and more enforceable than Advertisements Law of the People’s Republic of China. This kind of amendment is reasonable. Whether this kind of amendment successes or not, it depends on the improvement of the limited regulating power of the administration and the limited information acquiring ability, or there will be another failure of institution.The common problems of any organization is the asymmetric information and power. The upper level organization has power but not information, and the lower level organization has information but not power. This kind of double asymmetric information and power make the corrective advertising institution unenforceable, which implies that institution is not immutable, and it adapts to the changing situation.In the essence, advertising is a kind of goods,which mainly signals the the quality information of the goods, service, seller, and of course, other different values the consumers may cherish. Because of the ignorance of information, the consumers needs advertisement, and the producer needs advertisement to broadcasting their products. Advertising becomes a signal of the quality of goods produced by producer. Bounded rationality means that people have limited information acquiring ability. Producer will make use of the limited information acquiring ability deliberately, which makes the situation of consumer more difficult. To make effective advertising, Great rhetorical skills are used in advertising.Great rhetorical skills are used in advertising,which makes it more difficult for the administration of advertising to regulate perceptive advertising. The contents of advertising includes true information, false information, implied information, emotional appeal, ethical appeal, honors appeal, and peer pressure and so on, which indicates that deceptive advertising occurs. The analysis of advertising and rhetorical skills make us understands the economic logic of advertising and how the deceptive advertising works.The development of American’s corrective advertising injunction is a Hayek’s spontaneous process. The development of China’s corrective advertising injunction is a constructive process, which is more constructive.To make use of corrective advertising, we need to analysis the direct and indirect influences of this injunction. One possible influence is the amount of advertising would be rises, and producing joint responsibility,which indicates that corrective advertising is punitive, and we need to use it properly.Just like the logic the old Chinese punishment Qing, a punishment to make tattoos on the faces of criminals, corrective advertising injunction is punitive, which should be considered in practical using. To improve the dilemma that the administration of advertising in China,we need to give incentives to intrigue private powers in the regulating of perceptive advertising, and the available private parties are consumers, social organizations and competing advertiser.