Tencent-owned social media giant WeChat is cracking down on use of the platform for the purpose of fraudulent financial advertising and promotions.
WeChat announced on 13 July that it was “banning the implementation of fraudulent sales and promotions in the financial category,” including:
- Fraudulent wealth management content promising high returns.
- Fraud making use of “new concepts”, including the shared economy, the Internet of Things and cryptocurrencies.
- Exaggerated and false financial sales and promotions.
- Misleading financial sales and promotions.
- Unqualified financial sales and promotions.
The announcement from WeChat arrives following the release of the “Notice Concerning Further Standardisation of Financial Sales and Promotions Conduct” (关于进一步规范金融营销宣传行为的通知).
WeChat said that the new rules are for the purpose of protecting the lawful rights and interests of financial consumers, as well as preventing and controlling legal risk in relation to financial sales activities.