Beijing Imposes Significant Fine on Kuaigou for Regulatory Violations
BEIJING, January 31, 2026, 01:23 (GMT+8)
- China’s regulatory authority levied a fine of 26.7 million yuan (approximately $3.84 million) on Kuaigou, citing “illegal activities” as the basis for this decision.
- The agency underscored issues such as “unreasonable” fees, inadequate consumer protections, and failures in tackling counterfeit items and misleading advertisements.
- Kuaigou has acknowledged the financial penalty and expressed a commitment to enhance its compliance measures moving forward.
The fine was imposed on Kuaigou, the e-commerce division of Kuaishou Technology, due to numerous infractions identified on its live-streaming shopping platform.
In recent months, Beijing has intensified its scrutiny of the burgeoning live-streaming e-commerce sector, a space marked by rapid transactions conducted via live video.
This crackdown follows a series of official warnings regarding counterfeit goods and aggressive marketing strategies.
Platforms like Kuaishou, which rely on merchant revenues and in-app user traffic, are now facing heightened oversight. This scrutiny often results in escalated compliance costs and stringent regulations governing product listings and advertising approaches.
The State Administration for Market Regulation (SAMR) accused Kuaigou of imposing “unreasonable” charges and failing to uphold consumer welfare. Additionally, the platform struggled to adequately combat the sale of counterfeit goods.
Kuaigou also faced allegations of promoting deceptive marketing practices, a conclusion reached during an enforcement action stemming from a probe initiated in September.
In its findings, the regulator indicated that Kuaigou engaged in unlawful advertising without the requisite disclosures, although specific details of the omitted information were not provided.
Furthermore, Kuaigou was implicated in services associated with the illegal trade of wild animals and their derivatives, as well as prohibited hunting equipment.
In response to the ruling, Kuaigou stated on Friday that it “sincerely accepts” the regulatory decision and would “resolutely comply” with the imposed penalty.
This financial reprimand follows a detailed investigation initiated in September, during which the SAMR highlighted various “illegal and irregular occurrences” within the live-streaming e-commerce realm, including false advertising and counterfeit products.
As a Hong Kong-listed entity, Kuaishou is competing for market share amid a crowded landscape, facing off against other short-video and live-streaming platforms in addition to traditional e-commerce behemoths.
The regulatory body did not specify whether additional penalties might be forthcoming or if operating constraints would be tightened, thus leaving companies vulnerable to potential further enforcement actions if transgressions persist.
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