Caixin
Jan 21, 2022 08:10 PM
BUSINESS

Some Group-Buying Deals Are Too Good to Be True, Watchdog Warns

A collection point for online grocery group-buying products in Fuzhou, Fujian province, on May 25, 2021. Photo: VCG
A collection point for online grocery group-buying products in Fuzhou, Fujian province, on May 25, 2021. Photo: VCG

Cheap goods sold on online grocery group-buying platforms often fail to meet basic standards, China’s consumer protection organization warned, in the latest regulatory shot over the bows of the fast-developing industry.

The warning on shoddy products comes after a mixed 2021 for community group-buying platforms (社区团购), with the business seeing strong growth but some companies bowing out amid fierce competition and tightening scrutiny over potentially anti-competitive behaviors by the biggest players.

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