E-Commerce Livestream Scandals Prompt Calls for Tighter Oversight

The series of product quality scandals marks a broader trend of misleading advertising in the industry, which is going through a period of sluggish growth

As China’s livestream shopping industry grapples with slowing growth, a series of product quality scandals have exposed regulatory loopholes that rocked a sector once hailed as the future of retail.

Celebrity livestream hosts, who drive millions — sometimes billions — of yuan in sales on e-commerce platforms, form the backbone of the 4.9 trillion yuan ($720 billion) industry. However, several high-profile figures have recently been embroiled in controversies over fraudulent advertising, underscoring the need for greater accountability as the sector matures.

In September, a prominent livestream host surnamed Yang was fined 68.9 million yuan by market regulators in Hefei, Anhui province, for promoting products with false claims, including “made-in-Hong-Kong” mooncakes and questionable beef products.