China Fines Kuaishou Unit $3.8 Million for E-Commerce Violations
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China’s top market regulator has fined a subsidiary of short-video giant Kuaishou Technology 26.7 million yuan ($3.8 million) for a range of violations, including inflating sales data and enabling the illegal trade of wildlife products.
The State Administration for Market Regulation (SAMR) on Friday imposed the penalty on Chengdu Kuaigou Technology Co. Ltd., a wholly owned e-commerce unit of Kuaishou, following an investigation that began in September 2025. The fine is the latest in a series of regulatory actions aimed at addressing irregularities in China’s fast-growing but often disorderly livestreaming e-commerce sector.
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- China fined Kuaishou subsidiary Chengdu Kuaigou 26.7 million yuan ($3.8 million) for inflating sales, illegal wildlife trade, and other violations.
- Offenses included fake sales data, trademark infringements, unauthorized medical claims, and excessive merchant fees.
- The fine follows recent regulatory crackdowns and new guidelines; Kuaishou shares dropped 3.38% after the news.
- Kuaishou Technology
- Kuaishou Technology is a Chinese short-video giant whose e-commerce subsidiary, Chengdu Kuaigou Technology Co. Ltd., was fined $3.8 million by China's market regulator. The fine was for violations including inflating sales data, intellectual property infringement, consumer safety failures, and enabling illegal wildlife product sales. Kuaishou has faced increasing regulatory scrutiny and its shares fell following the news.
- Chengdu Kuaigou Technology Co. Ltd.
- Chengdu Kuaigou Technology Co. Ltd. is a wholly owned e-commerce unit of Kuaishou, established in 2019. China's top market regulator, SAMR, fined the company 26.7 million yuan ($3.8 million) for violations including inflating sales data, enabling illegal wildlife trade, and failing to protect consumer safety and intellectual property. The company also imposed excessive fees on merchants and failed to properly vet advertisements.
- 2019：
- Chengdu Kuaigou Technology Co. Ltd. was established to handle e-commerce operations for Kuaishou.
- November 2024：
- Police issued a warning to Kuaishou for failing to address illegal content and protect minors.
- September 19, 2025：
- The State Administration for Market Regulation (SAMR) launched a formal investigation into Chengdu Kuaigou Technology Co. Ltd.
- December 2025：
- Kuaishou suffered a major content moderation failure due to a cyberattack that disrupted livestreams with pornographic content, leading to a temporary suspension of the livestreaming function.
- January 7, 2026：
- SAMR and the Cyberspace Administration of China jointly issued new guidelines for livestreaming e-commerce platforms.
- Friday, January 31, 2026：
- SAMR imposed a 26.7 million yuan fine on Chengdu Kuaigou Technology Co. Ltd. for multiple violations.
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