Beijing slaps edtech unicorns Zuoyebang, Yuanfudao with steep fine over false advertising

  • The State Administration for Market Regulation imposed a maximum penalty of 2.5 million yuan each on Big Tech-funded Zuoyebang and Yuanfudao
  • The two companies are the front runners in China’s pre-college, off-campus education market

China’s pre-college, off-campus education market is forecast to reach US$115 billion this year. Photo: Shutterstock
Beijing’s market regulator has slapped education technology giants Zuoyebang and Yuanfudao the maximum penalty of 2.5 million yuan (US$388,591) each for false advertising and misleading marketing campaigns, as authorities tighten supervision of off-campus learning institutions.
The State Administration for Market Regulation (SAMR) said in a notice posted online on Monday that both Zuoyebang, which is backed by Baidu and Alibaba Group Holding, and Tencent Holdings-funded Yuanfudao falsified teachers’ work experience and advertised deceptive discounts to drive up sales, violating pricing and unfair competition laws in China.
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