Chinese state media calls for crackdown on deceptive pricing in live-streaming e-commerce
- Marking up the original price and offering fake discounts are seen as price fraud, the article said, citing rules by China’s Development and Reform Commission
- Live-streaming e-commerce has seen exponential growth in recent years, with sales jumping 58.9 per cent year on year in the first 10 months of 2023
Chinese state media Economic Daily has called for tighter regulatory scrutiny of deceptive pricing tactics in live streaming, as the country’s e-commerce players increasingly turn to these campaigns to lure customers and drive sales amid fierce competition and macro-economic headwinds.
In an opinion piece on Thursday, the official media blasted some live streamers for misleading consumers with tactics such as fake price comparisons and exaggerations, adding that more than 5,000 broadcasters were penalised last year for price manipulation.
Fabricating or marking up the original price and offering fake discounts are seen as price fraud, the article said, citing rules by China’s Development and Reform Commission.
“Live-streaming e-commerce has become an important part of the digital economy, but price fraud and other chaotic practices have hindered the high-quality development of the economy,” the article said. These tactics not only hurt consumers’ rights but also damaged the reputation of the live-streaming industry, it added.
The Economic Daily urged the government to improve regulations for the sector and increase the penalties for price fraud. The responsibilities of e-commerce platforms, merchants and broadcasters should be clarified in these cases, the media outlet said.
E-commerce platforms need to take the initiative to crack down on dubious live-streaming practices, the article urged, and they should impose harsher penalties and even ban those that repeatedly commit violations.
The call for stricter oversight comes as e-commerce platforms are increasingly relying on live streaming to attract consumers amid fierce domestic competition and weaker consumer spending.
