Livestream. Photo: CFP

 
Li Jiaqi, a top livestreamer in China, other multiple influential livestreamers and five major platforms like Taobao, have submitted business rectification reports to Zhejiang Consumers Council on Tuesday after being summoned by regulators for market violations, the association said on Wednesday.

The Meione (Shanghai) Network Technology Co, partner company of Li, said that the company has stopped selling products subject to regulatory probe, which will be back in stock once the scrutiny is completed.  

The e-commerce platforms have removed the products promoted by livestreamers that do not meet national quality standards. Moreover, all platforms have set up compensation funds in advance as a means to refund consumers. 

Taobao has removed all unqualified products and punished those livestreamers violating relevant regulations, while notifying consumers who have previously purchased those products for a refund. Merchants have been instructed to prioritize refunds. If merchants have insufficient funds, the platform has set up a service protection fund to guarantee consumers to get their refunds and then collect payment from responsible merchants. 

The five platforms will further strengthen the management of livestreaming services, enhance supervision on merchants.

JD.com, the country's second largest e-commerce platform after Alibaba, said that the platform will implement strict standards and regular training for livestreamers it hosts while formulating new punitive measures for violators. Meanwhile, the platform will further tighten standards for merchants' selection and assessment as well as enhancing internal sampling mechanism. 

Following Chinese regulators fining 'livestream queen' Viya's 1.34 billion yuan ($210.3 million) fine for tax evasion, the Zhejiang Consumers Council summoned multiple other liverstreamers including Li with major e-commerce platforms on December 23 after conducting a consumption inspection of livestream marketing activities on Taobao, Pinduoduo, JD.com, Kuaishou and Douyin, as well as 17 other influencers during this year's Singles' Day shopping festival. The results of the probe found that five of the influencers had knowingly engaged in exaggerated promotions. 


Global Times