Recently, Beijing Chunyu Tinglei Network Technology, a MCN company under Papi sauce, was fined 180,000 yuan, confiscation of illegal gains 1An administrative penalty of 80,000 yuan1. This is the first case in China in which a short-term MCN agency was fined for advertising violations, which has aroused widespread attention and discussion in the industry and netizens.
According to the provisions of the Advertising Law, the advertisement of medical devices must be reviewed by the advertising review authority, otherwise it is an illegal act 2. However, when the MCN company of Papi sauce released the advertisement, it was uncensored and did not indicate the words of the advertisement, which misled consumers and caused a negative social impact. It is reported that the cost of the advertisement is 18,000 yuan, and the ** volume of the advertisement is 20.39 million times, and the retweet data is 250,000 times, which brings 29$50,000 in income3.
Papi Sauce's MCN company was established in 2016 with former Angelababy agent Yang Ming and Papi Sauce himself Jiang Yilei as chairman and director respectively, with the ultimate beneficial shares of 52% and 30% respectively4. The company is mainly engaged in the production and operation of short ** content, and has a number of well-known short ** accounts such as Papi sauce, BIGGER Research Institute, Bailu, etc., with a total of more than 100 million fans, and is one of the largest short ** MCN institutions in China. As the company's core IP, Papi sauce has become popular for its funny and complaining style, known as "the first Internet celebrity in the universe", and has also set a record of 22 million yuan per advertisement**5.
However, with the increasingly fierce competition in the short industry, the MCN company of Papi sauce is also facing various challenges and crises. In terms of content, the ** style of papi sauce is becoming more and more bland, without the freshness and creativity of the year, and it has not kept up with the changes and trends of the times, resulting in a significant decline in its popularity and influence. For example, in 2019, the MCN company of Papi sauce was sued by the plaintiff VFINE Music to the court for the use of unauthorized ** in the short **, demanding compensation of 100,000 yuan, and was finally awarded 7,000 yuan in compensation6. And this time, Papi Sauce's MCN company was fined for advertising violations, which exposed its neglect and disregard for copyright and the law, and damaged its brand image and reputation.
Some people think that this is a warning and regulation of the chaos of short ** advertising, and some people think that this is a blow and punishment to the MCN company of Papi sauce. In any case, this incident also reflects the current situation and problems of the short industry, such as the homogenization and vulgarization of short content, the excessive and illegal advertising, the supervision and responsibility of short platforms, the copyright and rights protection of short creators, and so on. These problems need to be jointly considered and solved by practitioners and regulators in the short industry, so as to promote the healthy and sustainable development of the short industry.
Papi sauce MCN company was fined for advertising violations