Authorities Hold Talks with TikTok, Alibaba's Tmall, and Xiaohongshu Over Regulatory Concerns

Deep News04-02 19:51

On April 2, China's State Council Food Safety Commission, the State Administration for Market Regulation, and the General Administration of Customs held talks with three major platforms—TikTok, Alibaba's Tmall, and Xiaohongshu—regarding improper marketing practices related to cross-border e-commerce health supplements sold under the brand "Yousiyi." The platforms were urged to strictly comply with laws including the Anti-Unfair Competition Law, the Consumer Rights Protection Law, and the Food Safety Law. They were also instructed to strengthen oversight of cross-border merchants on their platforms, improve product management, enhance handling of harmful content, and ensure accessible channels for consumer inquiries, complaints, and reports. The move aims to safeguard consumer rights and promote healthy, orderly industry development.

Earlier reports indicated that the lutein-based eye health product "Australian Yousiyi," endorsed by celebrities, was sold through overseas flagship stores on major e-commerce platforms, with cumulative sales exceeding four million bottles. One product, the Obsidian Lutein Eye Care Tablets, was priced at 434 yuan per bottle. According to a April 1 report by state media, Yousiyi's official website listed its Chinese operator as Guangzhou Yalayuan Health Industry Co., Ltd., while its overseas address was given as Unit 1-5, 28 Dingly Lake Road, Melbourne, Australia. However, an on-site investigation in Melbourne revealed the location was not a health supplement factory but an auto repair shop.

The product's marketing campaign was handled by Hangzhou Suoxiang Marketing Planning Co., Ltd. A company executive surnamed Lu admitted that Yousiyi products were manufactured in Guangzhou but marketed as Australian. Regarding international awards featured in promotional materials, Lu stated that such awards could be purchased for approximately 20,000 to 30,000 yuan each.

In response to findings that "Australian Yousiyi" was domestically produced despite being marketed as imported, regulatory, customs, and public security authorities in Guangdong launched a joint investigation into Guangzhou Yalayuan Health Industry Co., Ltd. On the morning of April 1, local market regulators conducted evidence collection at the company's premises, with plans for follow-up product inspections. Simultaneously, customs and police authorities initiated their own probes. That same morning, market regulators in Hangzhou’s Binjiang District carried out an on-site investigation at Hangzhou Suoxiang Marketing Planning Co., Ltd., gathering evidence related to its business dealings with Guangzhou Yalayuan.

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