China fines seven e-commerce platforms 3.597 billion yuan over 'ghost delivery' food safety violations
The Facts
- China's market regulator imposed fines and confiscations totaling 3.597 billion yuan on seven e-commerce platforms over "ghost delivery" cases.
- The seven platforms named in the enforcement action were Pinduoduo, Meituan, JD.com, Taobao Flash Purchase, Douyin, Taobao and Tmall.
- Regulators ordered the seven platforms to correct their illegal conduct and suspended new cake-shop listings on the platforms for periods ranging from three to nine months.
- The regulator said the platforms failed to strictly review online food operators' licenses and did not fully perform their legal duty to verify merchant qualifications.
- Authorities said the platforms had signed cooperation agreements with order-transfer platforms and failed to take necessary measures even though they knew or should have known the transfers harmed consumers' lawful rights and interests.
- The legal representatives and food safety directors of the seven platform companies were fined a combined 19.6874 million yuan.
- After the investigation began, the seven platforms removed unaudited "ghost shops" and stopped restaurant order-transfer cooperation with related third-party platforms.
Context
What are "ghost deliveries" or "ghost shops" in this case?
"Ghost shops" are online food vendors that forged or lacked food-business permits and used tactics such as fake addresses, borrowed licenses or falsified storefront images to operate on e-commerce platforms; regulators said these practices enabled food delivery activity outside normal oversight 中時新聞網,news.cn.
Why were cake shops specifically affected by the listing suspensions?
State media said most of the more than 60,000 shops found to have evaded oversight were cake sellers. Regulators said cakes are often ordered one or two days in advance, giving merchants more time to transfer orders to other producers, unlike many routine meal deliveries that are more time-sensitive news.cn,早报.
How did the companies respond to the penalties?
Several of the platforms said they accepted the punishment and would comply with the regulator's requirements. Public responses from Pinduoduo, Meituan, JD.com, Taobao Flash Purchase and Douyin said they would implement rectification measures and strengthen food-safety compliance QQ新闻中心,早报.
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