China: State Administration for Market Regulation issued administrative penalty decisions against seven e-commerce platforms for food safety violations

On 17 April 2026, the State Administration for Market Regulation (SAMR) issued administrative penalty decisions against seven e-commerce platforms, Pinduoduo, Meituan, JD (Jingdong), Ele.me (operating as Taobao Flash Purchase), Douyin, Taobao, and Tmall. The platforms faced enforcement action for failing to conduct adequate licensing verification of food service vendors and for enabling unauthorised transfer of food orders through third-party platforms, practices collectively termed "ghost takeout" operations. The SAMR found that the platforms had failed to discharge their duty to verify food business licences and had signed data-sharing agreements with order-transfer platforms despite knowing these practices harmed consumer rights and violated the Food Safety Law. The investigation uncovered approximately 67'000 fictitious shop accounts operating across the platforms, with orders being illegally transferred to actual food preparation businesses at significantly reduced prices, resulting in consumers paying high prices whilst receiving low-quality food prepared under inadequate oversight. The SAMR imposed combined fines and confiscations totalling CNY 3.597 billion against the seven platforms and imposed separate fines totalling CNY 196.87 million against their legal representatives and food safety directors. The SAMR also ordered the platforms to rectify their conduct by removing unauthorised shops, ceasing cooperation with order-transfer platforms, and suspending new food shop registrations for periods ranging from three to nine months.