From March 1, 2022, how companies operate algorithms will be subject to new restrictions and guidelines in China. The new rules include:

• Operators providing news information that incorporate algorithmic recommendation services into their business will have to obtain a license to continue publishing news information. Operators are also forbidden from publishing fake news;

• Companies are required to inform users about the ‘basic principles, purpose and main operation mechanism’ of their algorithm recommendation service;

• Users must have the option to opt-out of having algorithmic-based recommendation services;

• Users must have the option to delete or select tags that are used for the algorithm to suggest search results for them;

•  Operators must implement the option for ‘safe use’ of algorithmic services for the elderly to shield them from potential virtual fraud and scams.

Algorithms are at the core of the operation of technology companies, from identifying potential customers, customer preference tracking, to recommendations on e-commerce sites and social media feeds. The success of many e-commerce sites and social media apps has been due to incorporating algorithms. China’s new algorithm regulations will affect business’ mode of operations and advertising strategies. 

For advice on China’s ever-changing marketing regulations, contact our marketing consultant at: enquiry@so360.hk.

Sources:  china-briefing.com, cnbc.com.