Chinese 7 E-commerce Platforms Fined 3.6 Billion Yuan for Involvement in “Ghost Delivery”

On April 17, 2026, due to involvement in “ghost delivery”, seven e-commerce platforms including Pinduoduo, Meituan, JD.com, Taobao Flash Sale, Douyin, Taobao, and Tmall were fined a total of 3.597 billion yuan (RMB), with senior executives fined nearly 20 million yuan. Some platforms have suspended the addition of new cake stores for 3 to 9 months, sparking widespread attention.

The State Administration for Market Regulation of the Communist Party of China announced administrative penalties against these seven e-commerce platforms for the “ghost delivery” series of cases, halting the addition of new cake stores for varying periods of 3 to 9 months and imposing a total fine of 3.597 billion yuan.

Pinduoduo was fined 1.522 billion yuan, Meituan 746 million yuan, JD.com 635 million yuan, Taobao Flash Sale (formerly Ele.me) 558 million yuan, Taobao about 47 million yuan, Tmall about 32 million yuan, and Douyin 57 million yuan.

Additionally, the legal representatives and food safety directors of the seven platform companies were fined a total of 19.6874 million yuan, marking the first simultaneous accountability of platform executives by Chinese authorities.

According to the State Administration for Market Regulation, the seven e-commerce platforms failed to rigorously examine the operating permits of food operators going online, did not fulfill their qualification review obligations as required by law, signed cooperation agreements with order-transferring platforms knowing or should knowing that such actions violated consumer rights but failed to take necessary measures. The legal representatives and food safety directors of the seven e-commerce platforms bear the responsibility for food safety management but did not fully fulfill their related duties.

After the investigation was initiated, all seven e-commerce platforms have taken down unexamined “ghost shops” and stopped the food delivery cooperation with related order-transferring platforms.

This incident immediately sparked online attention, temporarily topping Weibo’s hot search list.

Video blogger and Weibo influencer “Uncle Li Talks” wrote, “As a former food delivery platform operator, speaking frankly – ‘ghost delivery’, we internally referred to them as ‘pure delivery shops.’ These shops have several characteristics: online-only, no dine-in option; exquisite photos, actual dishes are pre-cooked or pre-packaged; cheap prices, but you don’t know what you’re eating.”

Weibo influencer “IT Jiuxi” said, “They were fined for being involved in ‘ghost delivery.’ Ghost delivery refers to shops displayed on the platform but cannot be found offline, without physical stores, legal qualifications, fake addresses/licenses, relying on disguised black workshop deliveries on the platform. Items like cakes, salads, light meals, burgers, pizzas, sushi, braised dishes, and trendy drinks are the main areas of ‘ghost delivery.'”

However, some netizens questioned, “This wave of fines against Pinduoduo, Meituan, JD.com, Taobao, Tmall, and Douyin for 35 billion yuan, everyone’s reaction is that the punishment is satisfying, but I start to think about another point: why is it always after problems arise that fines are imposed?

“Everyone has felt how these platforms operate – pressuring prices, controlling traffic, making merchants discount. Essentially, whoever controls the allocation makes the decisions. It’s a cycle of letting things run freely and then fixing them afterward. For ordinary people, we are both consumers and those affected by the rules. How prices are set, whether merchants can survive, are all dictated by platform mechanisms.

“So, of course, this 35 billion is effective, but more crucially: can the rules be set in advance rather than filling in the gaps after problems escalate? Otherwise, after today’s fine, there may be another round of ‘barbaric growth’ in a while.”

Some netizens also questioned, “So the quality issues, counterfeit issues are monitored by the platform, then hand over the value-added tax and consumption tax to the platform. “Okay, let’s endure it, it’s time to give back to the country after making so much money in the past ten years, although it’s a bit painful. The best days for internet platform companies are over.”