Beijing's New Luxury Advertising Law Aims to Hide Economic Inequality

 - Mar 24, 2011
References: bloomberg & bornrich
China is home to over 150 million people who live on less than $1 a day, a fact that has led to the implementation of Beijing’s new luxury advertising law.

Designed to cut down on the country’s burgeoning wealth gap, Beijing’s new luxury advertising law makes it illegal for public advertisements within the city to use words like "supreme," "luxury," "high class" or "royal" in their marketing copy, or to use imagery that is suggestive of lavish wealth or opulence. Failing to meet this regulation comes with a 30,000 yuan penalty.

As China’s consumer class and its subsequent appetite for luxury goods continues to grow, this new advertising ban is a dramatic example of how the country’s government is attempting to juggle its political and social principles with its unmistakable economic prosperity. It will be interesting to see how advertisers rise to the challenge posed by this new ban, and whether or not it will lead to similar laws being passed in other major Chinese cities.