Chinese regulators tighten grip on live-streaming e-commerce, intensifying scrutiny on tech
- China’s internet and market watchdogs, along with several other regulators, issued new rules to regulate the live-streaming sector
- Influencers and vendors are increasingly turning to live streams to sell products on the internet
China’s internet watchdog and six other regulators have jointly released new rules to regulate live streaming in the country’s booming e-commerce sector, set to go into effect on May 25, in Beijing’s latest move to tighten oversight of the powerful digital economy.
Live-streaming service providers will be required to create a list specifying the categories of products and services that are either unlawful or unsuited for sales through live-streaming, the Cyberspace Administration of China (CAC) said on its official website on Friday.
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Under the new rules – also promulgated by the Ministry of Public Security and the State Administration for Market Regulation (SAMR), among others – behaviours such as peddling fake products, falsifying view numbers, promoting pyramid schemes, and engaging in gambling and fraud would be deemed illegal and banned.
Platforms will need to hire professional moderators to “maintain the safety of live-streaming content”, according to the rules. A blacklist system should be established to block anyone, including account holders and live streamers, who seriously violate the regulations.
“The rules aim to regulate the internet market order, protect the legitimate rights of the people, promote the healthy and orderly development of emerging business models, and create a clean cyberspace,” the CAC said.
Live streaming has become an increasingly popular way to sell goods to online shoppers in China who have grown more accustomed to e-commerce during the Covid-19 pandemic, when many stayed home and worked remotely.
In 2020, China’s live-streaming e-commerce industry was worth about 1 trillion yuan (US$154 billion), according to estimates by accounting and consulting firm KPMG.
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As the sector grows, however, it has also drawn increasing scrutiny, with some live streamers having been accused of misrepresenting their products and services, as well as faking sales numbers.
In a high-profile case last year, well-known streamer Xinba came under fire after the market watchdog in the southern city of Guangzhou found that he had promoted fake bird’s nests, an expensive Chinese delicacy. Authorities fined Xinba 900,000 yuan, while Kuaishou blocked him from streaming on the platform for 60 days.
The new rules unveiled on Friday said that account holders and live streamers should respond to reasonable requests from consumers in a timely manner.
Regulators also stepped up supervision on live streamers, demanding them to provide their real names and social credit codes to service providers. Companies, in turn, must verify the information, submit them to local authorities, and deny services to any live streamers whose data does not match their real identity.
Live streamers and account holders must be aged over 16, with those under 18 required to obtain their guardians’ consent.
Regulators said they will establish relevant working mechanisms to share information with each other and carry out their respective responsibilities.
