Kuaishou Subsidiary Fined for Multiple E-Commerce Breaches
China's top market regulator, the State Administration for Market Regulation (SAMR), has imposed a substantial fine of 26.7 million yuan (approximately $3.8 million) on Chengdu Kuaigou Technology Co. Ltd., a wholly-owned e-commerce unit of short-video giant Kuaishou Technology. The penalty, announced on Friday, January 30, 2026, follows an investigation initiated in September 2025 into various irregularities within the company's live-streaming e-commerce operations.
Details of the Violations
The SAMR's investigation uncovered a range of illicit activities and misconduct. Key violations cited include:
- Inflating sales data and facilitating false or misleading marketing practices.
- Providing services that enabled the illegal sale or purchase of wild animals and their products or prohibited hunting tools.
- Charging 'unreasonable' fees to merchants.
- Failure to adequately protect consumers.
- Inaction regarding counterfeit products being sold on its platform.
- Publishing 'illegal advertising'.
- Failure to disclose required information in accordance with the law.
These findings highlight a concerted effort by Chinese regulators to address what they describe as 'chaotic practices' within the rapidly expanding live-streaming e-commerce industry.
Regulatory Context and Company Response
This fine is the latest in a series of regulatory actions aimed at tightening oversight of China's fast-growing but often disorderly live-streaming e-commerce sector. The SAMR's move signals a broader crackdown on content and operations deemed undesirable or harmful on Chinese online platforms.
In response to the ruling, Chengdu Kuaigou Technology Co. Ltd. issued a statement indicating its acceptance of the penalty. The company stated it 'sincerely accept(s) and will resolutely obey' the regulator's decision, pledging to strengthen operations in accordance with the law and improve its compliance levels to provide better services to consumers.
5 Comments
Bermudez
Kuaishou accepting the penalty is a step in the right direction. Hope they follow through.
Coccinella
Kuaishou's acceptance of the penalty is a positive sign for compliance, but the extent of the infractions reveals a significant internal oversight failure. They need to do more than just pay a fine; real systemic changes are required.
Comandante
Finally, some real accountability for tech giants! This is long overdue.
Mariposa
The term 'chaotic practices' sounds like a blanket statement for any activity they dislike.
Coccinella
Cracking down on illegal wildlife trade is absolutely essential. Good job, SAMR.