Chinese regulators imposed a 26 million yuan (~$3.7 million) fine on Chengdu Kuaigou Technology, a unit of Kuaishou Technology, for multiple violations in its live-streaming e-commerce operations, according to the State Administration for Market Regulation (SAMR).

The penalty, announced on SAMR’s WeChat account, follows an investigation that began in September into the operator of China’s second-largest short video platform, the South China Morning Post (SCMP) reports.

SAMR found Chengdu Kuaigou Technology committed seven violations, including failure to disclose information in accordance with the law, imposing unreasonable fees on merchants, and inadequate consumer protection.

Additional breaches included failure to prevent intellectual property infringement, the publication of illegal advertisements and misleading commercial promotions, and assistance in the sale of wild animals.

The ruling “formed part of regulators’ efforts to ‘crack down on chaotic practices,'” said Shu Lingmin, Deputy Head of Online Transaction Supervision at SAMR, at a press conference.

The Kuaishou unit accepted the penalty in a statement: “We will strengthen compliance with the law, further enhance our regulatory standards … and work together with our platform operators to provide higher-quality services to consumers.”

According to the SCMP, the investigation reflects broader regulatory scrutiny of content and operations on Chinese online platforms. China’s first regulations covering the live-streaming e-commerce sector took effect in February 2024.

SAMR received 402,000 complaints regarding live-streaming shopping transactions in 2024. China’s live-streaming e-commerce sector reached 5.8 trillion yuan in market size in 2024, according to the China International Electronic Commerce Centre, a research unit under the Ministry of Commerce.

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