China’s State Administration for Market Regulation (SAMR) fined seven e-commerce platforms for food safety violations. The total corporate penalty reached 3.6 billion yuan, or approximately $527 million. The fine impacts major industry players including units of Alibaba, Meituan, and PDD Holdings.
Regulators found these platforms failed to verify the licenses and qualifications of online food vendors. This oversight allowed ghost shops to operate under unsanitary conditions. SAMR ruled the companies neglected their legal duty to review merchants and protect consumers.
SAMR also personally fined legal representatives and food safety directors a combined 19.7 million yuan.