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IT Home Daily: AI Influencer Ad Removed, Telecom Price Hikes, and Corporate Acquisitions

The IT Home daily roundup highlights the removal of a contact lens advertisement featuring the popular AI influencer "Fang Taozi" for violating advertising laws, alongside China Unicom ending its low-price era by slashing channel commissions and raising broadband rates. Additionally, Yum China completed a $1.2 billion acquisition of Pizza Hut's mainland brand ownership, and Tencent announced its first-ever game collaboration with MiHoYo. The removal of the AI influencer's ad underscores growing regulatory scrutiny over virtual entities endorsing physical products they cannot physically experience, setting a legal precedent for AI-generated content commerce. Meanwhile, the telecom price hikes and corporate acquisitions signal a shift toward profitability and consolidation in China's digital and retail markets. The AI influencer "Fang Taozi", whose 60-second ad rate reaches 258,000 RMB, claimed the contact lenses were "comfortable to wear all day," which lawyers flagged as a violation of China's Advertising Law regarding fabricated user experiences. In the telecom sector, China Unicom Hangzhou cut channel commissions by 40%, causing some broadband package prices to surge by over 180%.

## BACKGROUND

Virtual influencers or AI digital humans are computer-generated characters powered by AI and computer graphics, increasingly used in China for short dramas, live streaming, and brand endorsements. However, China's Advertising Law requires endorsers to be civil subjects who have actually used the products they promote, creating a legal gray area for virtual entities making experiential claims.

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## KEYWORDS

#Tech News#Telecom#AI Regulation#Business

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IT Home Daily: AI Influencer Ad Removed, Telecom Price Hikes, and Corporate Acquisitions | Daily News