Chinese regulator penalizes Kuaigou for multiple violations
China’s market watchdog has fined Kuaigou, the e commerce unit of live streaming company Kuaishou Technology, 26.7 million yuan (about $3.8 million). Regulators said the company committed several illegal acts linked to consumer protection and platform management.
According to the State Administration for Market Regulation (SAMR), Kuaigou charged unreasonable fees and did not do enough to protect customers. In addition, the regulator said the platform failed to take proper action against counterfeit goods sold through its services.
Allegations include counterfeit goods and misleading marketing
The regulator also accused Kuaigou of supporting false or misleading marketing practices. Furthermore, officials said the company published illegal advertisements and failed to disclose required information.
SAMR added that Kuaigou also provided services connected to the illegal sale or purchase of wild animals, related products, or banned hunting tools. Because of this, regulators treated the case as serious misconduct within the live streaming e commerce sector.
Probe began in September amid broader industry crackdown
The fine followed an investigation that began in September. At that time, SAMR said it found illegal and irregular practices across the live streaming e commerce industry, including false marketing and counterfeit product sales.
Therefore, the penalty reflects China’s continued push to tighten control over online platforms and improve consumer safety.
Kuaigou accepts the penalty and promises compliance upgrades
Kuaigou responded later on Friday and said it sincerely accepts the regulator’s decision. The company also said it will follow the penalty and improve compliance.
In addition, Kuaigou promised to strengthen lawful operations and work with businesses on its platform to offer better services to consumers.
