The Chinese e-commerce firm Kuaigou, a subsidiary of the live-streaming technology giant Kuaishou Technology, has incurred a substantial penalty of 26.7 million yuan (approximately US$3.84 million) at the hands of Chinese regulatory authorities. This significant fine stems from a range of alleged “illegal actions” attributed to the company.
Kuaigou’s Alleged Irregularities
The nation’s market regulator has leveled accusations against Kuaigou for imposing “unreasonable” fees and neglecting adequate consumer protection measures.
Further charges include the company’s failure to adequately address the prevalence of counterfeit merchandise on its platform. Additionally, Kuaigou has been criticized for permitting misleading advertising practices to thrive within its ecosystem.
State Administration for Market Regulation’s Inquiry
This considerable fine resulted from a probe instigated by the State Administration for Market Regulation last September. The inquiry was incited by claims of “illegal and irregular activities,” which encompassed deceptive marketing and the dissemination of counterfeit commodities—issues particularly rampant in the live-streaming e-commerce sector.
Moreover, the regulator accused Kuaigou of disseminating “illegal advertisements” and failing to provide necessary disclosures. Allegations also included facilitating activities related to the “illegal sale or purchase of wildlife, their derivatives, or prohibited hunting apparatus,” according to the regulatory body.
Kuaigou’s Acknowledgment of Sanctions
In the aftermath of the fine and the associated allegations, Kuaigou issued a statement affirming its acceptance of the penalties imposed by the regulator. The firm stated, “We sincerely accept and will resolutely abide by the regulator’s ruling and penalties.”
Furthermore, the company has vowed to enhance its operational protocols in accordance with regulatory practices, striving to elevate its compliance standards. Kuaigou is also committed to collaborating with the businesses operating on its platform to deliver superior services to consumers.
FAQs
Why was Kuaigou fined by the Chinese authorities?
Kuaigou faced a penalty of 26.7 million yuan due to various “illegal activities,” such as imposing exorbitant fees, inadequate consumer protection, insufficient action against counterfeit products, and succumbing to false or misleading marketing practices.
What additional allegations were made against Kuaigou?
The firm was also found guilty of publishing “illegal advertisements,” lacking in mandatory disclosures, and facilitating transactions associated with the illicit sale or purchase of wild animals and their derivatives or prohibited hunting tools.
What has Kuaigou’s response been to the regulatory decision and subsequent fine?
Kuaigou publicly acknowledged the regulator’s decision and fine through a statement, promising to enhance its operational practices in compliance with the law, improve its compliance framework, and collaborate with platform businesses to better serve their consumers.
Source link: Retailnews.asia.
