China Fines E-commerce Giants $671 Million for Food Safety Lapses and 'Ghost' Deliveries

China's State Administration for Market Regulation (SAMR) has levied substantial fines against seven leading e-commerce platforms, signaling a crackdown on food safety and regulatory compliance. The hefty 3.6 billion yuan penalty underscores Beijing's resolve to enforce stricter standards across its digital marketplace. Platforms like Alibaba's Taobao, JD.com, Meituan, Pinduoduo, and Douyin are implicated for lax oversight, particularly concerning the vetting of food vendors and the proliferation of 'ghost shops' operating without proper licenses or physical establishments. The regulator's findings point to a systemic failure in fulfilling legal obligations, including inadequate qualification reviews and the facilitation of order transfers without customer consent. The specific prohibition on adding new cake shops highlights a targeted concern within the bakery sector, suggesting a pattern of non-compliance. This move reflects China's broader regulatory push to ensure consumer safety and fair competition within its rapidly evolving digital economy.

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ordered seven e-commerce platforms to rectify their illegal activities... and imposed fines and confiscations totalling 3.597 billion yuan