Chinese authorities have ordered major e-commerce platforms to tighten oversight of cross-border trade following a scandal involving products sold under the YouthIt brand.
Three government agencies on last Thursday summoned three platform companies - Douyin, Taotian, and Xiaohongshu - for talks regarding issues such as non-compliant marketing of counterfeit YouthIt products imported through cross-border e-commerce, as first reported by state broadcaster CCTV.
The summoning on Thursday came as a number of shopping stars and social media influencers posted apologies to their customers over the selling of the products.
The office of the food safety commission of the State Council, the State Administration for Market Regulation (SAMR) and the General Administration of Customs (GAC) have ordered these firms to strictly comply with laws and regulations, including the Anti-Unfair Competition Law, the Consumer Rights Protection Law, and the Food Safety Law, according to a notice published on the website of the SAMR.
Platforms are urged to earnestly fulfill their primary responsibilities, strengthen the review and vetting of cross-border e-commerce enterprises, enhance the management of goods sold, intensify efforts to address harmful information, and ensure smooth channels for consumer inquiries, complaints, and reports. In doing so, they will effectively safeguard consumers' legitimate rights and interests and promote the standardized, healthy and orderly development of the industry, noted the document.
CCTV reported on Wednesday that several products from "YouthIt" - which sellers claimed were imported from Australia, as stated on their labels - were in fact produced in China. In addition, the brand's origin story and international awards were fabricated, and online influencers were hired to promote the health products.
As of Thursday, "YouthIt" products have been removed from platforms including Douyin, Taobao, and Xiaohongshu, and multiple celebrities and live-streamers have issued apologies and offered solutions.
Hong Kong actress Carman Lee Carman issued a letter of apology on Wednesday following the CCTV report. "Upon seeing today's reports regarding the issues with YouthIt, as a seller who once recommended their product, I feel deeply shocked, angry and filled with remorse," according to a statement on her team's official WeChat account.
"For any YouthIt products purchased during my livestreams or through my store, regardless of purchase date or whether you've opened them, please contact us. We will issue a full refund on the same day,"
the letter said.
Teresa Cheung, a live-stream shopping star, posted an apology letter through her company's account on WeChat on Wednesday.
"We offer our sincerest apologies to everyone for letting you down and failing to live up to the trust you have placed in us. We are deeply remorseful for this breach of confidence,"
she said.
Ming Dao, an actor and singer from the island of Taiwan, also apologized on Wednesday, vowing to take responsibility and resolve the issue, the Beijing News reported.
Chinese mainland actor and singer Zeng Shunxi made an apology on Thursday. According to the apology letter posted by his team on Chinese social media platform Sina Weibo, the team wrote that they commenced a short-term cooperation with the brand in June 2024 and terminated it by the end of that year.
"During the short-term cooperation, we fulfilled our due diligence obligations in reviewing the brand to the best of our capacity. However, through this incident, we have realized that we still have room for improvement in areas such as the continuous tracking of the brand's background and public communication,"
it said.
According to CCTV News, following its report, three local government agencies in South China's Guangdong Province have jointly launched an investigation into Guangzhou Yalayuan Health Industry Co, the company behind "imported" health products like "Youthlt." Meanwhile, the market regulator in Hangzhou, East China's Zhejiang Province also launched an investigation into the marketing firm promoting the health products.
Source: The Global Times
