China tightens controls on livestream trade

Liu Junwei, deputy director of the Internet Supervision Department of the State Administration for Market Supervision, said that in the first half of the year, China’s online retail sales reached 74.295 billion yuan, up 8.5 percent year-on-year. The growth was largely driven by online orders through live streaming, which has become a major driver of the market in recent years.

Liu pointed out two serious problems in the sector: misleading advertising practices and the distribution of counterfeit and substandard goods.

The agency said that many livestream merchants are trying to sell their products with false or misleading advertisements: they misrepresent their origin, quality, performance, consumer reviews and sales data, thereby deceiving customers and violating the rights of consumers and fair market participants.

The authority said that in the coming period, the frequency of inspections aimed at product quality and food safety will be increased, the results will be publicly published, and livestream platforms will be obliged to regularly check the data of merchants advertising on them, ensuring real and authentic registration.

SAMR is introducing a new inspection system that coordinates online and offline inspections.

The authority said that sellers, merchants and online platforms that violate the regulations can expect strict sanctions.