Chinese authorities have recently kicked off a three-month campaign aimed at tackling online malpractice within the automotive industry. In a joint statement released by six departments, including the Ministry of Industry and Information Technology, it was revealed that the campaign will specifically target illegal profiteering, exaggerated and false advertising, as well as malicious defamation.
The main objective of this initiative is to encourage companies to regulate their marketing practices, cultivate a positive public sentiment environment, and safeguard the high-quality development of the automotive sector. Various forms of malpractice have been identified, including creating fake images or videos, fabricating stories, hyping negative narratives about automakers, maliciously interpreting sales figures, and attacking business development strategies, all of which are considered illegal profiteering.
Furthermore, coercing companies into business cooperation by threatening negative reviews, generating false content for profit using AI, and spreading false or misleading marketing about vehicle performance, functionality, quality, or sales status are also deemed illegal practices. Automakers are also prohibited from selectively disclosing sales data or publishing sales rankings.
Defaming or attacking automotive companies or products, tarnishing corporate or product reputations, and filing malicious complaints against companies are classified as malicious attacks. To address these issues, automakers and online platforms are required to conduct self-inspections and rectify any violations that are identified. Industry associations will also play a role in guiding the automotive sector in strengthening self-regulation.
In recent years, the rapid expansion of China’s electric vehicle (EV) industry and the transformation of media ecosystems have led to a significant influence of social media platforms on automakers’ development. Companies like Nio Inc, Xpeng, and Li Auto have taken proactive steps by establishing social media accounts for their legal departments to address the complexities of the online environment.
Nio’s founder, chairman, and CEO William Li revealed that the company spends a significant amount each month to combat online trolls attacking the company, although the specific sponsors remain unidentified. This move by Chinese authorities and automakers is crucial in maintaining a fair and transparent online environment within the automotive industry, ultimately benefiting both consumers and businesses alike.