China Cracks Down on 'Ghost Takeout', Heavy Fines of NT$16.8 Billion Imposed on 7 E-commerce Platforms
China's market regulators have imposed hefty fines totaling approximately NT$16.8 billion on seven e-commerce platforms, including Pinduoduo, Meituan, and Taobao, to combat 'ghost takeout' operations and ensure online food safety.
📋 Article Processing Timeline
- 📰 Published: April 17, 2026 at 19:24
- 🔍 Collected: April 17, 2026 at 19:31 (7 min after Published)
- 🤖 AI Analyzed: April 18, 2026 at 21:31 (25h 59m after Collected)
(Central News Agency Taipei, April 17) China's authorities have cracked down on 'ghost takeout' operations, imposing hefty fines totaling approximately NT$16.8 billion on seven e-commerce platforms and their responsible individuals, including Pinduoduo, Meituan, and Taobao. State media Xinhua commented that online spaces are not beyond the law, and platforms cannot profit without upholding their gatekeeping responsibilities.
'Ghost takeout' refers to unlicensed businesses operating on e-commerce platforms through means such as renting licenses, using false addresses, and fabricating store photos. This crackdown specifically targets ghost shops that subcontract low-price cake orders, leading consumers to purchase substandard cakes with food safety concerns at high prices.
The State Administration for Market Regulation (SAMR) announced on its official website on the 17th that it has made administrative penalty decisions on a series of 'ghost takeout' cases involving seven e-commerce platforms: Pinduoduo, Meituan, JD.com, Taobao Flash Sale, Douyin, Taobao, and Tmall. These platforms are ordered to rectify their illegal practices, suspended from adding new cake shops for 3 to 9 months, and fined a total of RMB 3.597 billion.
Concurrently, the SAMR also fined the legal representatives and food safety supervisors of the seven platforms a total of RMB 19.6874 million. The total fines issued exceed RMB 3.6 billion, equivalent to approximately NT$16.8 billion.
The SAMR stated that investigations found that these seven e-commerce platforms had lax oversight in verifying the business licenses of online food operators, failing to fulfill their qualification review obligations. They also signed cooperation agreements with subcontracting platforms, knowing or should have known that these subcontracting activities infringed upon consumers' legitimate rights, yet failed to take necessary measures. The legal representatives and food safety supervisors of the seven platforms, who bear food safety management responsibilities, did not fully perform their duties.
The announcement stated that after the investigation was initiated, the SAMR immediately ordered the e-commerce platforms to rectify the situation. All seven platforms have taken down unverified 'ghost shops' and suspended cooperation with related subcontracting platforms for food delivery.
Xinhua published a commentary this afternoon, noting that this is the largest fine issued to platforms since the amendment of the Food Safety Law in 2015. It directly targets platforms' complicity in 'ghost takeout' violations, sending a clear signal to strengthen online food safety supervision: safeguarding the 'safety on people's tongues' requires that online spaces are not beyond the law, and platforms cannot profit without upholding their gatekeeping responsibilities.
The commentary mentioned that investigations revealed that cake delivery shops on these platforms, through services like 'Zhuan Dan Bao' (Order Transfer宝), subcontract orders at low prices for a profit. The actual cake production is carried out by other operators, and consumers are unaware throughout the process.
The commentary also pointed out that consumers who ordered cakes for over 250 yuan found that after platform commissions and subcontracting fees, the actual cake maker received less than 80 yuan. During production, animal cream was replaced with cheaper vegetable cream, and fresh strawberries were swapped for canned fruit. Under the competitive order of 'lowest price wins,' manufacturers are forced to cut costs, leading to 'bad money driving out good.' The entire industry is compelled to abandon quality and compete on low prices, ultimately resulting in consumers paying for inferior quality.
Xinhua also directly criticized e-commerce platforms for turning a blind eye to false certificates uploaded by 'ghost shops,' accepting any uploaded document and allowing entry, leading to frequent 'license borrowing,' 'counterfeit license operations,' and even 'unlicensed operations.' This has allowed 'shell companies' with registered locations differing from actual operating sites to exist for extended periods.
The commentary concluded that when platforms simplify verification to 'uploading a certificate is sufficient,' or even allowing entry without a license, dark workshops hidden in shadowy corners are packaged as 'internet-famous delicacies' through the platforms. Inferior ingredients, uncertified products, and expired raw materials bypass supervision and reach consumers, effectively placing 'time bombs' on people's dining tables. (Editor: Yang Shengru / Chang Chih-hsuan) 0417115
Stand with the facts. Your sponsorship is the power to protect journalistic freedom.
Download the Central News Agency 'One-Stop News' APP for instant updates.
Text, images, and videos on this website may not be reproduced, broadcast, or transmitted without authorization.
'Ghost takeout' refers to unlicensed businesses operating on e-commerce platforms through means such as renting licenses, using false addresses, and fabricating store photos. This crackdown specifically targets ghost shops that subcontract low-price cake orders, leading consumers to purchase substandard cakes with food safety concerns at high prices.
The State Administration for Market Regulation (SAMR) announced on its official website on the 17th that it has made administrative penalty decisions on a series of 'ghost takeout' cases involving seven e-commerce platforms: Pinduoduo, Meituan, JD.com, Taobao Flash Sale, Douyin, Taobao, and Tmall. These platforms are ordered to rectify their illegal practices, suspended from adding new cake shops for 3 to 9 months, and fined a total of RMB 3.597 billion.
Concurrently, the SAMR also fined the legal representatives and food safety supervisors of the seven platforms a total of RMB 19.6874 million. The total fines issued exceed RMB 3.6 billion, equivalent to approximately NT$16.8 billion.
The SAMR stated that investigations found that these seven e-commerce platforms had lax oversight in verifying the business licenses of online food operators, failing to fulfill their qualification review obligations. They also signed cooperation agreements with subcontracting platforms, knowing or should have known that these subcontracting activities infringed upon consumers' legitimate rights, yet failed to take necessary measures. The legal representatives and food safety supervisors of the seven platforms, who bear food safety management responsibilities, did not fully perform their duties.
The announcement stated that after the investigation was initiated, the SAMR immediately ordered the e-commerce platforms to rectify the situation. All seven platforms have taken down unverified 'ghost shops' and suspended cooperation with related subcontracting platforms for food delivery.
Xinhua published a commentary this afternoon, noting that this is the largest fine issued to platforms since the amendment of the Food Safety Law in 2015. It directly targets platforms' complicity in 'ghost takeout' violations, sending a clear signal to strengthen online food safety supervision: safeguarding the 'safety on people's tongues' requires that online spaces are not beyond the law, and platforms cannot profit without upholding their gatekeeping responsibilities.
The commentary mentioned that investigations revealed that cake delivery shops on these platforms, through services like 'Zhuan Dan Bao' (Order Transfer宝), subcontract orders at low prices for a profit. The actual cake production is carried out by other operators, and consumers are unaware throughout the process.
The commentary also pointed out that consumers who ordered cakes for over 250 yuan found that after platform commissions and subcontracting fees, the actual cake maker received less than 80 yuan. During production, animal cream was replaced with cheaper vegetable cream, and fresh strawberries were swapped for canned fruit. Under the competitive order of 'lowest price wins,' manufacturers are forced to cut costs, leading to 'bad money driving out good.' The entire industry is compelled to abandon quality and compete on low prices, ultimately resulting in consumers paying for inferior quality.
Xinhua also directly criticized e-commerce platforms for turning a blind eye to false certificates uploaded by 'ghost shops,' accepting any uploaded document and allowing entry, leading to frequent 'license borrowing,' 'counterfeit license operations,' and even 'unlicensed operations.' This has allowed 'shell companies' with registered locations differing from actual operating sites to exist for extended periods.
The commentary concluded that when platforms simplify verification to 'uploading a certificate is sufficient,' or even allowing entry without a license, dark workshops hidden in shadowy corners are packaged as 'internet-famous delicacies' through the platforms. Inferior ingredients, uncertified products, and expired raw materials bypass supervision and reach consumers, effectively placing 'time bombs' on people's dining tables. (Editor: Yang Shengru / Chang Chih-hsuan) 0417115
Stand with the facts. Your sponsorship is the power to protect journalistic freedom.
Download the Central News Agency 'One-Stop News' APP for instant updates.
Text, images, and videos on this website may not be reproduced, broadcast, or transmitted without authorization.