According to CCTV News reports, on April 17, the State Administration for Market Regulation imposed administrative penalties on Shanghai Xunmeng Information Technology Co., Ltd. (PDD), Beijing San Kuai Technology Co., Ltd. (MEITUAN), Beijing Jingdong Sanbai Liu Shidu E-Commerce Co., Ltd. (JD-SW), Shanghai Lazaas Information Technology Co., Ltd. (formerly Ele.me, now Taobao Flash Shopping), Beijing Douyin Technology Co., Ltd. (Douyin), Zhejiang Taobao Network Co., Ltd. (Taobao), and Zhejiang Tmall Network Co., Ltd. (Tmall) — seven e-commerce platforms involved in the &#34;Ghost Food Delivery&#34; series of cases. The penalties were issued in accordance with Article 131 of the &#34;Food Safety Law of the People's Republic of China&#34; and Article 83 of the &#34;E-Commerce Law of the People's Republic of China.&#34; The platforms were ordered to correct their illegal behaviors, suspend the addition of new cake shops for 3 to 9 months, and fines and confiscations totaling 3.597 billion yuan were imposed. Additionally, under Article 75 of the &#34;Regulations on the Implementation of the Food Safety Law of the People's Republic of China,&#34; the legal representatives and food safety directors of the seven platform enterprises were collectively fined 19.6874 million yuan.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/bcbce5db-4aa4-4d51-a600-f6f4e410f771.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/bcbce5db-4aa4-4d51-a600-f6f4e410f771.png"/>
Upon investigation, it was found that the above seven e-commerce platforms failed to strictly review licenses for food operators entering the network and did not fulfill their qualification review obligations as required by law. They signed cooperation agreements with order-transfer platforms while knowing or should have known that such transfer activities infringed upon consumers' legitimate rights and interests but failed to take necessary measures. Furthermore, the legal representatives and food safety directors of the seven e-commerce platforms bore responsibility for food safety management but did not fully perform their respective duties. These actions seriously violated relevant provisions of the &#34;Food Safety Law of the People's Republic of China,&#34; the &#34;E-Commerce Law of the People's Republic of China,&#34; and the &#34;Regulations on the Implementation of the Food Safety Law of the People's Republic of China.&#34;
After the case investigation was initiated, the State Administration for Market Regulation immediately instructed the e-commerce platforms to make immediate corrections. All seven platforms have since removed unreviewed &#34;ghost stores&#34; and terminated catering order transfer collaborations with relevant transfer platforms.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/9e2322ed-dd7f-4311-9a54-ca20d3108bc0.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/9e2322ed-dd7f-4311-9a54-ca20d3108bc0.png"/>

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On April 17, the State Administration for Market Regulation imposed administrative penalties on seven e-commerce platforms — PDD, MEITUAN, JD-SW, Taobao Flash Shopping, Douyin, Taobao, and Tmall — due to lax review of food operator qualifications and failure to prevent order transfer activities. The platforms were ordered to suspend adding new cake shops for 3 to 9 months, with total fines and confiscations amounting to 3.597 billion yuan. The legal representatives and food safety directors of the seven platforms were fined a combined 19.6874 million yuan. All platforms have since removed relevant 'ghost stores' and terminated order transfer partnerships

- On April 17, the State Administration for Market Regulation penalized seven e-commerce platforms, including Pinduoduo and Meituan, for violations related to "ghost deliveries."  
- The platforms were fined a total of 35.97 billion yuan, required to suspend new cake shop listings for 3 to 9 months, and faced additional fines on their legal representatives for poor food safety management practices.  
- Investigations revealed that these platforms failed to adequately verify food operator licenses and neglected their responsibilities towards consumer rights, leading to significant legal breaches.

Wallstreetcn

MEITUAN

JD-SW

JD.com

Alibaba

BABA-W

MEITUAN-WR

Meituan

Meituan HK SDR 5to1

JD-SWR

BABA-WR

Alibaba HK SDR 5to1

7 Platforms Fined Nearly 3.6 Billion Yuan for Involvement in 'Ghost Food Delivery': PDD 1.522 Billion, MEITUAN 746 Million, Alibaba Group 630 Million