China hits food delivery platforms with 3.6 billion yuan fine for 'ghost' deliveries

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China hits food delivery platforms with 3.6 billion yuan fine for 'ghost' deliveries
E-Commerce PlatformsFood SafetyFines

JEDDAH: Johor Darul Ta'zim's (JDT) hopes of becoming the first Malaysian club to reach the AFC Champions League (ACL) Elite semi-finals were dashed after a narrow 1-2 defeat to defending champions Al-Ahli on Friday (April 17).

The legal representatives of the companies were also fined a total of 19.7 million yuan, the market regulator said. - Photo: Pexels BEIJING: China has issued fines totalling 3.6 billion yuan to seven major e-commerce platforms for food safety violations, the State Administration for Market Regulation said on Friday .

The regulator said platforms, including Alibaba-owned Taobao, JD.com, Meituan, Temu-owner Pinduoduo and Douyin -- China's version of TikTok -- had failed to check the licenses of stores on their apps and allowed"ghost food deliveries" from unverified vendors. SAMR said in a statement it had"ordered seven e-commerce platforms to rectify their illegal activities... and imposed fines and confiscations totalling 3.597 billion yuan". The legal representatives of the companies were also fined a total of 19.7 million yuan , the market regulator said. An investigation showed the platforms had"not strictly reviewed and checked the licenses of food operators entering their networks, and failed to fulfil the obligation of qualification review in accordance with the law," SAMR said. They had also signed agreements with order-transfer platforms, which infringed on consumers' rights, SAMR said. "Ghost shops" do not have physical dine-in restaurants and are accused of unsanitary conditions and bypassing food safety regulations while posing as regular restaurants online.Order transfers see orders for one restaurant moved to another vendor to fulfil, normally without the customer knowing.They were also prohibited from adding new cake shops to their delivery platforms for periods ranging from three to nine months, suggesting the illicit practices are particularly rife in bakeries. They had removed"ghost shops" and stopped cooperating with order-transfer platforms for food deliveries, SAMR said. - AFP

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E-Commerce Platforms Food Safety Fines SAMR Ghost Food Deliveries Unverified Vendors License Checks Consumer Rights Order Transfers

 

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