China's market regulator said it will step up enforcement of livestream e‑commerce rules, doubling down on a year of special rectification that, officials say, has begun to tame widespread malpractice in the sector. At a January 30 press briefing, the State Administration for Market Regulation (SAMR) signalled a shift from episodic crackdowns to a steadier, systematised supervision model that aims to make platforms the principal ‘gatekeepers’ of compliance.
The regulator outlined a four‑point plan. Platforms will be required to implement the full suite of obligations under the Live‑stream E‑commerce Supervision and Management Measures — from merchant qualification checks and real‑time information reporting to training, graded management and public disclosure. SAMR also plans a national standard for platform services to further refine those duties.
Enforcement will intensify. SAMR said it will marshal prosecutorial tools such as elevated or designated jurisdiction and cross‑regional coordination to pursue major, illustrative cases. It will promote a practice dubbed “one case, three investigations”: when wrongdoing is found, authorities will simultaneously probe the merchant, the anchor and the platform to attribute responsibility across the entire chain.
Routine supervision will sharpen too. Building on last year’s campaigns, regulators will focus inspections on persistent problems — counterfeit goods, deceptive marketing and falsified sales practices — and verify the authenticity of merchant licences and operating addresses. Platforms will face regular audits of their compliance with statutory duties to verify and disclose merchant credentials.
SAMR also encouraged local market authorities to deploy new regulatory levers that target traffic and visibility. Besides administrative penalties, authorities can notify platforms of infringements and trigger measures such as limiting stream traffic, pausing broadcasts or imposing temporary suspensions — tactics designed to cut off the economic incentives for illicit behaviour as well as to raise the cost of non‑compliance.
For China’s live‑stream economy — a giant that channels billions of dollars of sales through charismatic anchors and algorithmic promotion — the measures are both a threat and an opportunity. Stronger policing promises to reduce fraud and improve consumer trust, which helps reputable merchants and platforms. But the operational burden of continuous verification, disclosure and training, together with the spectre of fast, non‑monetary sanctions (traffic curbs and suspensions), will raise costs and create compliance risks, especially for smaller platforms and independent anchors.
International brands and cross‑border sellers that rely on Chinese livestream channels will face tighter documentation and onboarding processes, as platforms are pressured to vet entrants more rigorously. The move also echoes broader regulatory patterns in China: authorities prioritise market order and consumer protection while using platform control points — from app stores to recommendation algorithms — to enforce rules.
In practice, the success of SAMR’s approach will hinge on the resolve of local regulators and the clarity of implementation standards. A national service standard could bring consistency, but vigorous, uneven local enforcement — including the use of traffic restrictions — could push marginal players out of the market and accelerate consolidation around large, well‑resourced platforms. The result will likely be a live‑streaming landscape with fewer bad actors but higher entry and operating costs.
Ultimately, the regulator’s message is clear: livestream commerce will no longer be a lightly policed frontier. Platforms must act as front‑line compliance officers or face swift and multifaceted consequences, a development that reshapes incentives across China’s digital retail ecosystem.