China’s 315 Gala puts the spotlight on live-streaming market abuses as US$188 billion industry continues to attract Beijing’s ire

China’s state broadcaster used the might of its audience reach during the annual 315 Gala on Tuesday to shine a light on fraudulent practices in the country’s US$188.3 billion live-streaming sector, upping the ante on an industry that has seen some of its biggest stars hit by huge tax penalties.

The 315 Gala, watched by up to a billion people and traditionally used to highlight consumer rights abuses in China, this year featured criticism of how some live-streaming e-commerce shows induced male followers to send gifts to attractive, female key opinion leaders (KOLs) who were later impersonated, in some instances, by male members of staff.

The show highlighted a company named Juxiang Huyu, which used a staff team to keep in touch with men who had sent gifts, which could be redeemed for cash, to KOLs enticing them to send more money and tips.

China has also been ramping up regulation of the sector amid its wider crackdown on the country’s tech industry, which has triggered huge stock market losses for some of the country’s biggest companies.

The authorities have tightened scrutiny over a range of issues in the past year, ranging from data security, monopolistic practices, abuses of consumer rights to limiting the video gaming time for minors.

The state-owned China Central Television show also highlighted the dangers of consumers being persuaded to make snap purchases during live-streaming e-commerce shows. It put its finger on Chengze, an online jewellery store, which invited jade suppliers to its live-steaming show who then promised buyers a discount. However, the TV show conducted a secret interview with a Chengze employee who alleged that the suppliers were actually actors.