Wang Han apologizes—"Aiqianjin" leaves you with no money

[2] Compiled from: Zhizhu Wang, Tencent Finance
 
[5] Case Review
[3] Recently, a P2P financial platform called "aiqianjin," once endorsed by Wang Han, experienced a situation where investments matured but could not be withdrawn or transferred. After discovering this, investors took to the internet to criticize Wang Han, demanding he take some responsibility.

 
[4] On July 2, Wang Han responded to the matter. He stated that he had been aware of the delayed redemption issues with the "aiqianjin" app and had contacted the platform multiple times, but failed to inform the public in a timely manner, for which he expressed deep apologies.
 
[5] Wang Han's apology statement not only quickly topped Weibo's trending list but also sparked widespread discussion among netizens about the impact of celebrity endorsements.
 
[6] However, for the investors caught in the turmoil, Wang Han's "heartache" and "deep apologies" were of little use. They generally demanded that Wang Han, as the endorser of "aiqianjin," take concrete actions, such as returning his "endorsement fee" to compensate for their investment losses.
 
Some netizens also expressed that the endorser did not actually deceive investors. Furthermore, Wang Han endorsed "iQianjin" from 2016 to 2018, while the incident with "iQianjin" occurred in 2020. As merely an endorser, Wang Han did not have the ability to foresee this. Therefore, Wang Han should not be held responsible for the "iQianjin" app.
 
So, if an endorsed product has issues, does the endorser need to bear responsibility?

 

 
Relevant legal provisions
"Advertising Law of the People's Republic of China"
Article 38
An advertising endorser, when recommending or proving a product or service in an advertisement, should base it on facts, comply with this law and relevant laws and administrative regulations, and must not recommend or prove products they have not used or services they have not received. Minors under the age of ten must not be used as advertising endorsers. Natural persons, legal persons, or other organizations that have received administrative penalties for recommending or proving in false advertisements within the past three years must not be used as advertising endorsers.
 
Article 62
If an advertising endorser falls under any of the following circumstances, the market supervision and administration department shall confiscate their illegal income and impose a fine of one to two times that amount: (1) Violating Article 16, Paragraph 1, Item 4 of this law by recommending or proving in medical, pharmaceutical, or medical device advertisements; (2) Violating Article 18, Paragraph 1, Item 5 of this law by recommending or proving in health food advertisements; (3) Violating Article 38, Paragraph 1 of this law by recommending or proving products they have not used or services they have not received; (4) Recommending or proving products or services in advertisements while knowing or should have known the advertisement is false.

 

 
[1] The author's perspective
According to Article 38 of the Advertising Law, endorsers recommending or proving "products they have not used or services they have not received" is also a prohibited area. From a legislative perspective, this is a typical strengthening of advertising ethical responsibility. From a practical perspective, raising the ethical standards of celebrity endorsements not only enhances the social responsibility of celebrity endorsers as public figures but also has a certain supervisory effect on the quality of advertised products.
 
However, proving that an endorser has "used the product or received the service" is quite challenging. From a legal perspective, if a celebrity-endorsed advertisement is false, but the celebrity neither knew nor should have known it was false, the celebrity does not need to bear joint liability with the advertiser for the false advertisement. In this case, based solely on the advertisement content, we cannot yet determine that the advertisement itself is a "false advertisement," let alone prove that endorser Wang Han endorsed it while "knowing it was a false advertisement." Therefore, it is also difficult for the law to assign liability.
 
From a logical perspective, some users will choose "iQianjin" among similar products due to celebrity credit endorsements, or even learn about "iQianjin" because of the celebrity's fame and then invest. In this sense, there is a connection between celebrity endorsements and users' purchase or use of products. Furthermore, the funds for "iQianjin" come from user investments, and the endorser's fees are paid by "iQianjin," essentially meaning the endorser's fees originate from users. Thus, the endorser makes money, "iQianjin" profits, and ultimately, users suffer losses.
 
At this point, regardless of whether the endorser compensates or how they compensate, they face a dilemma. If the endorser returns the endorsement fee under public pressure, it implies admitting to endorsing a "false advertisement." If the endorser refuses to return the fee, many victims will continue to denounce them, potentially severely damaging their reputation.
 
In my view, regardless of whether the endorser knew in advance that the endorsed product or service was a "false advertisement," users must thoroughly understand the product or service before deciding whether to purchase or invest.The "gray rhino event" refers to risks that are too common, metaphorically representing potential crises with high probability and significant impact. Amid long-standing market chaos, the gray rhino of "P2P endorsements," after layers of disguise, has finally approached people's eyes. Such products can bring certain changes to consumers' lifestyles, requiring them to invest substantial time and effort, review platform credentials with basic financial knowledge, understand investment projects, and then decide whether to purchase. Currently, internet financial platforms aim to expedite the removal of these crucial steps by hiring numerous celebrity endorsers, essentially using celebrity influence to drive impulsive consumption and investment.
 
Some say the root of all this is human greed; without greed, there would be no losses. But I argue that greed is human nature, and what is more terrifying than greed is the spark that ignites it. How to ensure proper market operation, regulate endorsement behavior systems, and supervise brand quality should be our focus.