New Draft Rules for Digital Avatars and Virtual Humans in China

On April 3, 2026, China’s Cyberspace Administration (CAC) released draft Measures for the Management of Digital Virtual Human Information Services (《数字虚拟人信息服务管理办法（征求意见稿）》), for public comment through May 6. These measures, if finalized, would regulate the use of “digital virtual humans” for a variety of commercial purposes online, including advertising. In effect, the draft extends and elaborates existing PRC rules on deep synthesis, AI-generated content, personal information protection and online information services, to the realm of digital avatars.

For the advertising industry, this is notable because the draft is not aimed only at AI developers. It appears designed to capture the broader commercial chain: brands, agencies, networks, service providers and platforms may all have responsibilities depending on their role.

Why this matters for marketing teams

Digital avatars are increasingly used for livestreaming, customer contact, endorsements, and multilingual campaigns. China’s draft rules suggest regulators now view these tools as mainstream commercial media to be regulated accordingly, including through the application of existing advertising, consumer protection and data rules.

Key themes in the draft

1. Clear labeling of virtual humans

The draft requires prominent disclosure of any use of a digital human. This aligns with current AI labeling rules, and will likely apply throughout the use, not just in fine print or at the start of a video.

2. Consent and likeness rights

Use of a real person’s face, voice, image or identifiable traits may require consent. This overlaps with China’s existing personal information and personality-rights regimes, and we would expect it to be particularly relevant for “lookalike” spokespeople or scraped training materials tied to individuals.

3. False or manipulative promotion

The draft prohibits using digital humans for false promotion or improper inducement to consume goods or services. This is already prohibited under existing Chinese law. The inclusion in the draft indicates that false advertising by virtual human will not be treated any differently. 

4. Regulatory compliance obligations

Service providers offering virtual human products “with public opinion or social mobilization capabilities” must complete an algorithm filing, make timely updates for any changes, and conduct mandatory security assessments. Platforms are also required to establish convenient appeal, complaint and reporting mechanisms to handle user feedback on virtual human products deployed on their platforms.

5. Penalties for violations: 

The draft proposes penalties such as warnings, public reprimands and mandatory corrections, service suspensions, and fines of up to RMB 200,000. More serious penalties may be imposed if provided for under other relevant laws, which could plausibly include China’s very powerful telecom laws as well as consumer protection laws. In general, the draft reflects China’s multi-agency approach to AI governance, potentially involving advertising, telecom, public security and sector-specific regulators, depending on the situation.

Practical steps for brands now

The draft remains open for comment, but the direction is clear. China is moving toward treating virtual-human marketing as an ordinary regulated commercial activity, with potentially broad liability, and not as an experimental or niche AI tool. Brands and agencies considering the use of avatars for marketing in China should closely watch the development of these proposed measures, and in the meantime review any existing virtual avatar campaigns for prospective compliance. Looking forward, it is likely that compliance costs for these tools will rise due to consent, labeling, filing and review obligations.