China Puts New Regs On Influencers
Influencers are an integral part of e-commerce, whether you believe in them or not, and live streaming events by influencers can be a way for companies to sell lots of items in a very short time. There is little that is not sold this way, from makeup to bananas, but can influencers sell financial products the same way? They do, and because of the popularity of such events, the Chinese government has ‘proposed’ new rules regarding the sale of financial products by influencers that are not licensed or regulated.
The new rules, which are expected to go into effect after a public comment period, not only make it illegal for influencers and celebrities to aggrandize financial products but now make it illegal for them to sell banking, insurance, and securities services on-line unless they are appropriately licensed, ending a lucrative business that has flourished in China over the last few years and given celebrities a second income source. Chinese government regulators have been watching the sale of such products online for a number of years with a 2020 notice by the Chinese Banking & Insurance Regulatory Commission highlighting fraudulent and misleading claims by unlicensed celebrities on the internet, but have left the online market untouched until now. If this trend is picked up in the US, does it mean that Tom Selleck will not be able to hawk reverse mortgages online?
The new rules, which are expected to go into effect after a public comment period, not only make it illegal for influencers and celebrities to aggrandize financial products but now make it illegal for them to sell banking, insurance, and securities services on-line unless they are appropriately licensed, ending a lucrative business that has flourished in China over the last few years and given celebrities a second income source. Chinese government regulators have been watching the sale of such products online for a number of years with a 2020 notice by the Chinese Banking & Insurance Regulatory Commission highlighting fraudulent and misleading claims by unlicensed celebrities on the internet, but have left the online market untouched until now. If this trend is picked up in the US, does it mean that Tom Selleck will not be able to hawk reverse mortgages online?
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