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When Professional Fraud Fighters Target Live Streaming (AI Translation)

Published: Dec. 21  1:52 p.m.  GMT+8
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2015年3月11日,北京,职业打假代表性人物王海。
2015年3月11日,北京,职业打假代表性人物王海。

文|财新周刊 冯奕铭 孙嫣然

By Caixin Weekly's Feng Yiming and Sun Yanran

  “你们家多款产品配料表造假,我们找一个‘公权力’来,你也把你们家(公司)产品技术人员都叫来,然后我们现场提交关于你家的举报材料。”2024年10月底以来,打假博主“松哥打虎”“赏金猎人灰烬”在抖音连发多条短视频,直指零食品牌商良品铺子(603719.SH)的部分商品配料表造假。

"Several of your company's products have falsified ingredient lists. We suggest getting an 'authority' involved. You should also call in all your technical staff, and we will submit all relevant reports about your company on site." Since late October 2024, anti-fraud bloggers "Song Ge Da Hu" and "Bounty Hunter Hui Jin" have posted multiple short videos on Douyin, directly accusing snack brand Bestore (603719.SH) of falsifying ingredient lists for some of its products.

  视频中,两名博主带领摄像人员“突袭”良品铺子武汉总部大楼,并在市场监督管理局执法人员和良品铺子工作人员面前说明情况。这两名博主声称,在7月之前多次、多地购买良品铺子售卖的一款“桂香坚果藕粉”产品并送检,结果显示其中掺杂了木薯粉,并非纯藕粉,但产品配料表中并未标明含木薯成分。此外,博主还送检了良品铺子一款酸辣粉产品,配料表标注为红薯淀粉,但粉饼中并未检出红薯、木薯、马铃薯等成分基因。

In the video, two bloggers led a camera crew in a "raid" on the headquarters of Bestore in Wuhan. They explained the situation in front of officers from the Market Supervision and Administration Bureau and staff from Bestore. The bloggers claimed that before July, they had repeatedly purchased a certain "Osmanthus-flavored Nut Lotus Root Starch" product sold by Bestore in various locations and had it tested. The results allegedly showed the presence of cassava starch mixed into the product, not pure lotus root starch, yet cassava was not listed as an ingredient. Furthermore, the bloggers also tested a Bestore spicy and sour vermicelli product, which listed sweet potato starch as an ingredient, but no genetic traces of sweet potato, cassava, or potato were detected in the noodles.

  11月18日,武汉市东西湖市场监督管理局(下称“东西湖市监局”)发出通报,认定上述博主所举报问题不成立。两名博主随后又发视频称将“硬刚到底”,但目前抖音平台的相关视频已全部删除。

On November 18, the Dongxihu Market Supervision Administration in Wuhan (hereinafter referred to as "Dongxihu Market Supervision Bureau") issued a notification, determining that the issues reported by the aforementioned bloggers were unfounded. The two bloggers subsequently posted another video declaring they would "fight to the end," but all related videos have since been removed from the Douyin platform.

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Caixin is acclaimed for its high-quality, investigative journalism. This section offers you a glimpse into Caixin’s flagship Chinese-language magazine, Caixin Weekly, via AI translation. The English translation may contain inaccuracies.
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When Professional Fraud Fighters Target Live Streaming (AI Translation)
Explore the story in 30 seconds
  • Anti-fraud bloggers accused snack brand Bestore of falsifying ingredient lists, leading to an investigation by Wuhan's market supervision, which found the claims unfounded.
  • The anti-counterfeiting industry is gaining traction, leveraging consumer protection laws, but its motivations and methods, including settlements, have sparked debate over potential extortion.
  • Regulatory adjustments aim to balance genuine consumer protection against exploiting compensation through fake counterfeiting, focusing on evidential support and consumer demand relevance.
AI generated, for reference only
Explore the story in 3 minutes

In late 2024, anti-fraud bloggers accused Bestore, a snack brand in China, of falsifying ingredient lists on its products. They alleged the presence of unlisted cassava starch in a lotus root product and mismatched genetic traces in vermicelli noodles. Following their accusations, the Wuhan Dongxihu Market Supervision Bureau investigated and refuted these claims. Despite these findings, the bloggers persisted, maintaining the issues were real, and vowed to fight on, although their videos were removed from Douyin. This incident highlighted the growing trend of online accusations impacting e-commerce [para. 1][para. 2][para. 3][para. 4].

The industry has seen other similar high-profile accusations. At the beginning of 2024, other brands like Douyin live-hosts and cosmetics companies were involved in allegations of selling misrepresented or counterfeit products. Investigations often revealed these claims to be exaggerated or unfounded, yet they led to significant industry concerns and consumer skepticism. These incidents captured the intricate landscape of live-stream e-commerce where influencers and brands are frequently targeted by professional anti-counterfeit activists [para. 5][para. 6][para. 7].

The rise in such activities has spotlighted the broader issue of what constitutes counterfeit goods. Notably, reports showed that fraudulent product claims sometimes exploited minor labeling issues or policy changes rather than substantial adulteration or safety breaches. Furthermore, it's been noted that while efforts claim to safeguard consumers, there's potential for misuse where ongoing claims demand unfair compensation from companies. This practice often falls into a gray area where distinctions between genuine consumer protection and extortion become blurred [para. 8][para. 9][para. 10][para. 11][para. 12].

Wang Hai, a well-known anti-counterfeit activist, has participated in this industry since 1995, claiming substantial annual earnings through exposing fraud. He contends that increased public scrutiny of counterfeit products is driven by the ease of spreading information in the age of live-stream e-commerce. The competitive pressures within the industry often lead to manufacturers and influencers compromising quality or truth in advertising, prompting backlash and fraud claims [para. 13][para. 14].

The relationship between anti-counterfeit activists and businesses can become entangled. While some businesses settle with accusers to avoid litigation or adverse publicity, others face continuous challenges due to the potential for claims to snowball into larger controversies. Regulatory bodies are beginning to adjust policies to discern legitimate claims from those made for profit, emphasizing rigorous investigation and protecting true consumer interests without fostering a professional claims industry [para. 15][para. 16][para. 17][para. 18][para. 19].

Despite its challenges, the system of professional counterfeit oversight plays a role in market regulation. It encourages better quality control among companies and provides a check against widespread counterfeiting practices. However, concerns remain about the distortive impact of internet-driven pressure campaigns on companies. Stakeholders emphasize the need for clear regulatory frameworks to ensure claims are handled legally and fairly, without undermining business integrity or misleading consumers [para. 20][para. 21][para. 22][para. 23][para. 24].

Ultimately, while professional counterfeit fighting industries strive to curb deceptive practices, the narrative around them is complex, involving both genuine consumer protection and opportunistic profit-seeking. Hence, ensuring transparent regulatory measures and fostering industry compliance with quality standards are pivotal in navigating this dual-edged field.

AI generated, for reference only
Who’s Who
BESTORE
良品铺子
BESTORE, a snack brand, was accused of ingredient list falsification by the anti-counterfeiting bloggers "Song Ge Da Hu" and "Bounty Hunter Gray Ash." They claimed that BESTORE's products, such as "Osmanthus Nut Lotus Root Powder," contained undeclared cassava flour. However, investigations by Wuhan's Dongxihu Market Supervision Bureau found the accusations unfounded. After official findings, BESTORE issued a clarification and planned to take legal action against the bloggers for their misleading claims.
Oriental Select
东方甄选
In early 2024, the well-known anti-counterfeiting figure Wang Hai exposed that the product "TiQ Tianqi Prune Juice," sold by popular Douyin hosts including Oriental Select, contained laxatives. Consequently, the General Administration of Customs revoked the Chinese registration of the product's manufacturing company due to falsified registration materials and advised consumers against purchasing the product.
Pechoin
百雀羚
Pechoin, a well-known domestic cosmetics company, was accused of using prohibited ingredients but was found compliant in official reports. The controversy arose when a user alleged the inclusion of "Round Leaf Morning Glory Extract" in their products, which became a banned ingredient after 2021. The company clarified that products containing the ingredient were made before the ban, and official announcements supported Pechoin's stance. Despite being temporarily entangled in a backlash, user support surged in live-streams following the clarification.
Anhui Yanzhifang Food Co., Ltd.
安徽燕之坊食品有限公司
Anhui Yanzhifang Food Co., Ltd. is mentioned in the article as the producer of the "桂香坚果藕粉" (fragrant nut lotus root powder) product for the brand Liangpin Puzi. The company was involved in a controversy when bloggers claimed their product contained cassava flour not listed on the ingredient label. It was part of an investigation by the local market supervision department, which found no cassava components in the tested products.
Henan Pinzheng Food Technology Co., Ltd.
河南品正食品科技有限公司
Henan Pinzheng Food Technology Co., Ltd. is mentioned in the article as the producer of a sour and spicy noodle product for the brand Bestore. It was involved in an investigation regarding the authenticity of its ingredient list, which was eventually concluded with the local market regulatory authorities finding no evidence of any wrongdoing by the company.
AI generated, for reference only
What Happened When
Before July 2024:
Anti-fraud bloggers claim they repeatedly purchased Bestore's "Osmanthus-flavored Nut Lotus Root Starch" and had it tested, alleging falsified ingredient lists
Since Late October 2024:
"Song Ge Da Hu" and "Bounty Hunter Hui Jin" start posting videos accusing Bestore of falsifying ingredient lists
November 18, 2024:
The Dongxihu Market Supervision Administration in Wuhan issues a notification, determining bloggers' claims against Bestore unfounded
November 19, 2024:
Pechoin is reported by a Weibo user for containing banned ingredients
November 20, 2024:
Pechoin issues a statement responding to the claims about banned ingredients
By November 24, 2024:
The viewership and sales figures for Baicao Brainwash Great Wall soar during the controversy
After November 2024:
"Song Ge Da Hu" and "Bounty Hunter Hui Jin" persist in their claims against Bestore
By the Mid-Autumn Festival 2024:
Douyin host confesses to selling a counterfeit mooncake and promises refunds and compensation
By the End of 2024:
Several Douyin hosts accused of false advertising, including Xiaoyang Ge and Dongbei Yujie
AI generated, for reference only
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