Live-streaming shopping a new black spot in e-commerce, China’s consumer rights watchdog says
- The China Consumers Association received a total of 66,798 complaints sent by online shoppers during the Labour Day holiday
- Live-streamed retail initiatives during that holiday recorded nearly US$20 million in sales
Trouble is brewing, however, for live-streamed campaigns after the country’s consumer rights watchdog received a surge of complaints about product quality, fake deliveries and lack of after-sales service during the recent Labour Day holiday.
The China Consumers Association (CCA) said in a report on Tuesday that it gathered a total of 66,798 complaints sent by online shoppers from April 30 to May 5. It did not break down how many of these complaints were about live-streamed shopping campaigns, but said the negative feedback in that segment escalated during the period.
The CCA cited the case of Chinese actor Xie Mengwei, who pitched for an undisclosed online merchant on a live-streamed campaign in late April. He later issued an apology, made through video-sharing platform Kuaishou, after buyers complained about receiving fake or damaged goods, the CCA said.
In addition, the CCA reported 14,604 complaints about online games during the Labour Day holiday period. These involved refunds for in-game purchases and the lack of spending limits for players under the age of 18.
The watchdog’s negative report on live-streamed shopping campaigns represents a setback for this trend, which is credited with helping China’s retail sector recover as the domestic economy started reopening in the aftermath of the coronavirus pandemic.