China has imposed massive fines worth 3.6 billion yuan, approximately $527 million, on seven major e-commerce and food delivery platforms over widespread food safety violations. Moreover, the action was announced by the State Administration for Market Regulation after investigations revealed serious regulatory failures in online food operations. As a result, major digital platforms faced strict penalties for allowing unverified vendors to operate within their systems.
The penalized companies include major players such as Alibaba-owned Taobao, JD.com, Meituan, Pinduoduo, and Douyin, which is China’s version of TikTok. In addition, regulators found that these platforms failed to properly verify restaurant licenses before listing vendors on their apps. Consequently, unregulated food providers were able to reach consumers without meeting required safety standards.
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Authorities highlighted that many of these violations involved so-called “ghost food deliveries,” where fake or unverified restaurants operate online without real physical kitchens. Furthermore, these vendors often used rented or fraudulent business licenses to appear legitimate on delivery platforms. As a result, consumers unknowingly ordered food from sources that bypassed basic hygiene and safety requirements.
The regulator also discovered that some platforms entered agreements with order-transfer systems, which redirected food orders to different vendors without informing customers. In addition, this practice further weakened transparency and increased risks to consumer safety. Consequently, officials stated that such systems directly violated both food safety and e-commerce regulations. This added another layer of concern to the investigation findings.
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Moreover, the SAMR confirmed that legal representatives of the involved companies were also fined a combined 19.7 million yuan. In addition, several platforms received restrictions preventing them from adding new bakery vendors for periods ranging from three to nine months. As a result, authorities indicated that violations were particularly common in bakery-related listings. The companies have since begun removing fake listings and ending partnerships with order-transfer platforms.
Overall, the crackdown reflects China’s stronger enforcement of digital marketplace regulations and consumer protection laws. Furthermore, regulators emphasized that platforms must ensure strict verification of vendors before allowing them to operate online. Consequently, the case signals tighter oversight of the fast-growing food delivery industry. It also highlights increasing global concerns over transparency in digital food services.