China’s 315 Gala puts the spotlight on live-streaming market abuses as US$188 billion industry continues to attract Beijing’s ire
- CCTV’s 315 Gala is watched by up to a billion people and is traditionally used to highlight consumer rights abuses in China
- This year’s show focused on fraudulent practices in the country’s US$188.3 billion live-streaming sector, which has attracted Beijing’s scrutiny
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.
The fresh criticism of the booming live-streaming sector comes after a year in which many of the industry’s leading lights have been fined millions of yuan for tax evasion by the authorities, including Viya, Xueli Cherie, Lin Shanshan and Ping Rong.
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.
Most of the companies named in the two-hour show are not publicly traded.
The fact that live-streaming has been shamed on the high-profile show indicates that Beijing still has its eye on the industry. China’s live-streaming e-commerce market was worth more than 1.2 trillion yuan in 2020, according to a report released by iResearch last September. There were at least 1.23 million “professional” live-streaming hosts and aides working in the industry in 2020, compared with fewer than a quarter of a million the year before.
The industry gained added traction during the pandemic, as more people shopped at home during lockdowns and quarantine procedures.