07

2021

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10

Lawyer Liu Kaixin from Legal Shengbang: Legal Risks and Compliance of Enterprises in Live Streaming Goods

In recent years, the development of "live streaming sales" has been rapid, especially under the epidemic, and the marketing method of live streaming sales has become a common product marketing method. Whether in traditional or emerging industries, "live streaming with goods" allows consumers to quickly obtain product or service information, and real person interaction also increases consumers' desire to purchase. As an emerging business model, it is highly sought after.


Abstract: In recent years, the development of "live streaming sales" has been rapid, especially under the epidemic, and the marketing method of live streaming sales has become a common product marketing method. Whether in traditional or emerging industries, "live streaming with goods" allows consumers to quickly obtain product or service information, and real person interaction also increases consumers' desire to purchase. As an emerging business model, it is highly sought after.

 

However, due to the low threshold and insufficient regulation of the live streaming marketing industry, "live streaming with goods" has also spawned many social and legal issues, particularly in product quality, intellectual property infringement, exaggerated or false advertising. How to use the emerging business model of live streaming sales to achieve sales growth while avoiding potential legal risks has become an urgent legal service demand for many enterprises, as ordinary enterprises have transitioned from traditional promotional marketing to online marketing. In this context, the author combines customer service experience, the development trend of the e-commerce live streaming industry, and the current legislative status to analyze the main legal risks in "live streaming with goods" from a corporate perspective, and provide compliance suggestions.

 

1、 The model of enterprise live streaming with sales

 

1. Platform live streaming method

From the perspective of enterprises, it can be divided into self delivery mode and outsourcing delivery mode.

 

The self delivery mode refers to the behavior of enterprises with independent operation capabilities directly assigning their employees to live stream and deliver goods on the platform. The entire delivery behavior is completed within the enterprise, and employees are the anchors. The employees here may be some people with live streaming experience recruited by the company, or they may be entrepreneurs, executives, directors, and other people who can represent the company, such as Dong Mingzhu, who has been promoting Gree live streaming multiple times.

 

Outsourcing delivery mode refers to the mode that requires external collaboration to complete live streaming delivery. At present, it is common to entrust MCN institutions, celebrities, or influencers as anchors to use their own traffic and influence to achieve a certain sales volume for enterprises, while also bringing more exposure.

 

2. The operation mode of live streaming with goods

Whether it is the self delivery mode or outsourcing delivery mode, enterprises will also entrust professional institutions to provide data analysis, account operation, and broadcasting services in order to ensure or improve their exposure during live streaming delivery.

 

Therefore, the operation mode in general enterprise live streaming sales can be divided into three stages. As the supplier of goods, the enterprise belongs to the first stage, which can be a manufacturer that integrates production and sales, as well as a brand or sales party; The second step is for various service providers, including broadcasters, MCN institutions, live streaming platforms, and companies or individuals providing relevant service support around live streaming e-commerce. The needs of enterprises are formed in various service agreements in the second step; The third step is to generate live streaming content and monetize consumption by outputting it to consumers, while simultaneously providing payment and logistics services.

 

2、 The current legal and policy situation of live streaming sales

 

In recent years, the country has been continuously updating relevant laws. Since last year, multiple regulatory departments have issued over 20 normative documents targeting live streaming e-commerce, forming a regulatory system that combines laws and regulations. In addition, there are relevant industry standards that gradually promote the development of industry compliance. The "Management Measures for Online Live Streaming Marketing" jointly released by seven national departments this year and officially implemented on May 25th can be said to be the most directly related regulation for live streaming sales, which directly clarifies the responsibilities of each subject.

 

3、 The relationship between enterprises and relevant legal entities in live streaming sales

 

From the above live streaming sales model and operation mode, it can be seen that enterprises will have connections with different entities and have different legal relationships under different laws.

 

1. Enterprise

In live streaming sales, enterprises, also known as merchants, may have different definitions in different legal provisions. As the first link in live streaming sales, enterprises are subject to many legal regulations: in the Advertising Law, enterprises are advertisers; In the E-commerce Law, enterprises are platform operators; In the Consumer Rights Protection Law, enterprises are operators; According to the Product Quality Law, enterprises can be both sellers and producers.

 

2. Enterprise and employee anchors

Broadcasters recruited by enterprises themselves generally have a labor contract relationship with the enterprise and are handled in accordance with relevant laws and regulations such as the Labor Contract Law. In addition, as the names and portraits of employees will be involved in the live broadcast, enterprises need to authorize and legally use them in accordance with the relevant provisions of the Civil Code.

 

3. Enterprises and external service institutions or individuals

External institutions or individuals are generally in the second stage of the operation mode, signing different contracts for services provided by different entities, such as live streaming promotion agreements, account commission operation agreements, etc. However, they are essentially service contract relationships, and the main applicable laws are the Civil Code and the Electronic Commerce Law.

 

4. Enterprises and consumers

Consumers are the end of the live streaming sales model, the recipients and buyers of live streaming content. The live streaming content of enterprises should first comply with the provisions of the Advertising Law, and after the consumer and enterprise have a buying and selling relationship, they are also subject to the provisions of the Civil Code, the Consumer Rights Protection Law, and other laws.

 

4、 Enterprise risks in live streaming sales

 

From the relationship between the enterprise and various legal entities mentioned earlier, it can be seen that live streaming sales are not a single legal relationship behavior. In the middle, multiple legal relationships are covered. In addition to the directly related entities mentioned above, the live streaming sales behavior of the enterprise is also subject to supervision by relevant administrative departments. If there are serious illegal behaviors, it may also violate the criminal law. From the perspective of enterprises, the author will sort out and analyze the relevant requirements and responsibilities that are currently scattered in various laws and regulations, and summarize the main legal risks that enterprises face in live streaming sales. This can serve as a guide for compliance points for enterprises to enter live streaming sales.

 

The author mainly classifies risks based on the entities involved, including consumer risks (for enterprises and), anchor risks (for enterprises and), and enterprise risks. Enterprise risks mainly refer to the risks that may arise from regulatory authorities and unspecified entities in various stages of live streaming sales, including market risks and business risks, totaling 48 risk points. Please refer to the following figure for details:

 

 

From the above legal risk analysis, it can be seen that moving towards live streaming sales is not an easy task for enterprises, as live streaming sales have entered the 2.0 regulatory era. As a marketer of online live streaming, enterprises, from selecting live streaming personnel or partners, to controlling live streaming text and advertising language, to controlling business processes such as live streaming output, shipping, and after-sales, all rely on clear laws and regulations and continuous compliance with their own live streaming sales behavior. Only in this way can they gain a share in the complex world of online marketing and avoid falling into illegal "traps" and be punished with huge amounts of money, Even assume corresponding legal responsibilities.