BUSINESS

China Fines E-Commerce Giants $527 Million for Allowing Unverified Merchants

Published: Apr. 17, 2026 6:39 p.m. GMT+8

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An ordering page of a food delivery app. Photo: VCG

China’s market regulator has fined seven major e-commerce platforms a combined 3.6 billion yuan ($527 million) for allowing unverified “ghost takeout” merchants to operate on their networks.

The State Administration for Market Regulation announced on Friday that the platforms — Pinduoduo, Meituan, JD.com, Taobao Instant Commerce, Douyin, Taobao and Tmall — were penalized for failing to verify food business licenses, permitting merchants without physical dining spaces or those that had already closed to process online delivery orders.

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China's market regulator fined seven e-commerce platforms (Pinduoduo, Meituan, JD.com, etc.) 3.6B yuan ($527M) for unverified "ghost takeout" merchants lacking licenses or physical spaces.
Pinduoduo hit hardest at 1.5B yuan; platforms must suspend new bakery shops 3-9 months; execs fined 19.7M yuan.
Follows new rules and guidance; platforms removed storefronts, ended partnerships.

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Who’s Who

Pinduoduo: Pinduoduo (PDD Holdings Inc.) received the largest fine of 1.5 billion yuan ($220 million) from China's market regulator for allowing unverified "ghost takeout" merchants without food licenses. It must correct violations, suspend new bakery shops for 3-9 months, and has removed such storefronts and ended order-transfer partnerships.

Meituan: Meituan was fined 746 million yuan ($109 million) by China's market regulator for allowing unverified "ghost takeout" merchants without food licenses or physical spaces. It must correct violations, suspend new bakery shops for 3-9 months, and has removed storefronts while ending order-transfer partnerships.

JD.com: JD.com was fined 635 million yuan ($93 million) by China's market regulator for allowing unverified "ghost takeout" merchants without food licenses or physical spaces to operate. It must correct violations, suspend new bakery shops for 3-9 months, and has removed such storefronts and ended order-transfer partnerships.

Taobao Instant Commerce: Taobao Instant Commerce was one of seven platforms fined in a 3.6 billion yuan ($527M) penalty for allowing unverified "ghost takeout" merchants without food licenses. It must correct violations, suspend new bakery shops for 3-9 months, and has removed unverified storefronts while ending order-transfer partnerships.

Douyin: Douyin was one of seven e-commerce platforms fined in a combined 3.6 billion yuan ($527 million) by China's market regulator for allowing unverified "ghost takeout" merchants without food licenses. It must correct violations, suspend new bakery shops for 3-9 months, and has removed such storefronts.

Taobao: Taobao was one of seven e-commerce platforms fined in a combined 3.6 billion yuan ($527 million) penalty by China's market regulator for allowing unverified "ghost takeout" merchants without food licenses. It must correct violations, suspend new bakery shops for 3-9 months, and its reps face fines.

Tmall: Tmall was one of seven e-commerce platforms fined in a combined 3.6 billion yuan ($527 million) penalty by China's market regulator for allowing unverified "ghost takeout" merchants without licenses or physical spaces. It must correct violations, suspend new bakery shops for 3-9 months, and has removed such storefronts.

AI generated, for reference only