The current situation in China
It is reported that online consultation and online pharmaceutical product buying are gradually emerging, and the number of users is growing year by year. According to the statistics of Mininet, in 2021, China’s pharmaceutical terminal sales were 1,774.7 billion yuan, of which online sales only were 36.8 billion yuan, and the penetration rate is only 2.1%. In 2023, China’s pharmaceutical terminal sales reached 2,076.1 billion yuan, and the penetration rate of online channels reached 19%, with a high growth rate. According to a report by CCTV in January 2024, as of December 2023, more than 1,000 merchants of pharmaceutical products have registered on Chinese TikTok, while fewer than 100 merchants have been guaranteed by official hospitals and pharmacies. At the same time, there are no relatively strict regulatory measures for those businesses that do not have the guarantee of official hospitals and pharmacies. Faced with a dazzling array of pharmaceutical products on social media, it’s hard for people to make choices, especially for old people.
An example I found
he Kuaishou certification information of “Dr. Li Miao” is “Doctor of Integrated Traditional Chinese and Western Medicine in a Hospital in Ningbo”, with nearly 700,000 fans. The reporter entered the live broadcast room and saw that Dr. Li was wearing a blue medical gown with a small whiteboard behind him, and was introducing the symptoms of weak spleen and stomach to netizens: “dry mouth and bitter mouth, excessive gas, stomach distension and indigestion, dare not eat cold ……” In order to show medical professionalism, Dr. Li also talked about Chinese medicine tongue diagnosis. For example, how to judge tongue coatings, tooth marks, cracks, etc., she also patiently drew pictures on the small whiteboard to explain. After some explanation, Dr. Li began to bring the goods. She took out her mobile phone and taught netizens how to place an order – first open the product link of “Ginseng Gui Spleen Cream” below, and then select the quantity package and pay immediately. At the same time, I didn’t forget to add a few words, “If you have a weak spleen and stomach, remember to take the No. 10 link to recuperate, and many old fans have sent me private messages after buying it, saying that the effect is good and it is selling fast.” The fact that a product lasts for years shows how effective it is! ”
After being cracked down, the Kuaishou platform still allows “Dr. Li Miao” to bring goods? Some industry insiders told reporters that the natural traffic of ordinary live broadcast rooms is relatively small, and live broadcast rooms with more than 100 online people like “Dr. Li Miao” usually need to be advertised to achieve it. Mr. Li, who has been engaged in the Internet advertising business for many years, revealed that in some live broadcast rooms that sell health care products, the daily advertising amount can easily exceed 10,000 yuan. Recently, Kuaishou released its results for the first quarter of 2023, achieving revenue of 25.22 billion yuan, a year-on-year increase of 19.70%; The adjusted net profit was 42 million yuan, which was the first time that Kuaishou achieved overall profitability at the group level since its listing. As the largest source of revenue, Kuaishou’s online marketing service (commercial advertising) revenue reached 13.1 billion yuan in the first quarter, a year-on-year increase of 15.1%; The total transaction volume (GMV) of e-commerce reached 224.8 billion yuan, a year-on-year increase of 28.4%; Revenue from live streaming was 9.3 billion yuan, a year-on-year increase of 18.8%. A reporter from Yangcheng Evening News interviewed the Kuaishou Public Relations Department on why “Dr. Li Miao” can pass the Kuaishou certification audit, the amount of advertising, and how the Kuaishou platform checks the goods brought by “doctors”. The other party said that it could not reply to the above questions for the time being.
History
Early
Telephones, newspapers, posting advertisements, etc., to attract a large number of seniors. After getting in touch, invite the elderly to attend their offline lectures, usually giving some daily necessities and food. A large number of elderly people are also skeptical at first, but they have plenty of time, and they usually choose to attend offline lectures in order to receive daily necessities and food. Such offline lectures are usually only allowed to attend by the elderly, and there will be some big men guarding the door. If an elderly person comes with their children, they will be stopped and said that there is no lecture today. After the lecture began, the “doctors” began to popularize science and sell their own products. They often opt for experiments to convince older people that their products work wonders and can cure any disease. Most older people will slowly start to believe when they see the experiment. Usually after 3-4 lectures, many older people start buying medicines. At this time they have been completely brainwashed and convinced.
Now
With the popularity of the Internet, they moved the same routine to the web. Because the cost of practice on the network is lower, the number of target groups is larger, and it is more “secure”.
Regulation in China
Can doctors sell pharmaceutical products on social media?
With the endorsement of the doctor’s identity, it is easier to gain the trust of consumers. However, in the “Key Points for Correcting Unhealthy Practices in the Field of Pharmaceutical Purchase and Sales and Medical Services in 2022” issued by the National Health Commission and the Administration of Traditional Chinese Medicine and other departments, it is clearly pointed out that “the staff of medical institutions will be seriously investigated and punished for taking advantage of their positions and identities to bring goods live“. In March this year, the “Nei Mongolia Daily” published an article entitled “The Chaos of “Practicing Medicine” in the Live Room Urgently Needs to Be Rectified”, which pointed out: “Even if a doctor privately carries out online diagnosis and treatment in the live broadcast room, it does not meet the practice standards of doctors. Practicing medicine and selling drugs in the live broadcast room in the name of a doctor is undoubtedly illegal. It is worth noting that Article 8 of the Measures mentions that “it is forbidden to publish advertisements for medical treatment, medicines, medical devices, health foods, and formula foods for special medical purposes in the form of introducing health and health preservation knowledge”. At the same time, Article 8 also emphasizes that “those who introduce health and wellness knowledge shall not appear on the same page or at the same time”. The reporter checked and found that while introducing health and wellness knowledge in the live broadcast room of “Dr. Li Miao”, relevant shopping links will pop up on the page. Her “Physician Qualification Certificate” and “Physician Practice Certificate” are also displayed on its homepage.
So, none of the salespeople you see on social media wearing doctor’s clothes are doctors from regular hospitals, and they don’t have medical credentials. And dressing up as a doctor is just a means for them to sell, and they hope to mislead people into believing them in order to buy these products.
Emerging channels
With the rapid development of the Internet and the wide application of smartphones and social media, social media shopping has gradually integrated into people’s lives. It is convenient, fast, and favored by many people. Now, not only can you buy food, daily necessities and other products on social media, but pharmacies are also gradually opening official online pharmacies on social media, trying to use social media as a new way to sell.
Many official pharmacies and pharmaceutical companies have gradually started to develop TikTok online prescriptions, and provide services such as online consultations and over-the-counter drug purchases. This is a good way to go, which is very convenient for people who are pressed for time and have limited transportation. But there are also many unqualified doctors or drugs fishing in troubled waters in the market. So far, platforms have not been strictly regulated, and people have not been able to identify them accurately.
For mature online shopping sites, they do a very good job of supervision, but for social media such as TikTok, the supervision needs to be strengthened.
https://bydrug.pharmcube.com/news/detail/2aa046d4579205cc4aa4fb9806e44ad0
Examples of Chinese government judgments
On March 15, 2023, China’s CCTV reported an article on ‘The live broadcast platform sells plasters and the anchor becomes “Jianghu Langzhong”? The article “Bringing Goods Hidden Risks” revealed the scam of selling fake health products on Chinese TikTok.
https://news.cctv.com/2023/03/15/ARTIfooCPh81H3saxALEq8hd230315.shtml
Live streaming platforms may be a good channel – official pharmacies register accounts on Chinese TikTok to sell over-the-counter drugs.
http://www.legaldaily.com.cn/Drug_supervision/content/content_8822317.html
The Chinese Supreme Court’s judgment on relevant cases is a reference point
https://www.spp.gov.cn/xwfbh/wsfbt/201903/t20190322_412539.shtml
a real experience
https://m.huxiu.com/article/822998.html
Forbidden drugs are mixed with corn flour to pretend to be diet pills, the cost is a dime, the daily output reaches tens of thousands of grains, TikTok and Tieba are promoted, and they are sold in WeChat, causing users to have diarrhea.