China Penalizes 26,000 Online Accounts for Slandering Businesses

The Cyberspace Administration of China has intensified its campaign against corporate defamation and extortion, removing over 1.56 million illicit online posts and penalizing more than 26,000 accounts. In a newly released second batch of benchmark cases, regulators spotlighted illicit practices including coercing companies into paid commercial contracts to delete negative posts, fabricating product flaws around product launch events, and recycling outdated corporate controversies to undermine business confidence.

The crackdown highlights Chinese regulators' determination to curb online extortion and toxic commercial defamation disguised as public interest oversight. By publicizing specific cases, authorities are establishing clear boundaries between legitimate media commentary and unlawful shakedowns, aiming to protect corporate reputations and stabilize private-sector confidence amid an increasingly competitive commercial environment.

China's central internet watchdog has deepened its enforcement against online corporate defamation and commercial extortion, disclosing a second batch of typical regulatory cases under an ongoing nationwide campaign. According to an announcement from the Cyberspace Administration of China, regulatory authorities and major commercial web platforms have purged more than 1.56 million pieces of content infringing on corporate rights and taken punitive measures against over 26,000 accounts. The special initiative, titled "Clear and Bright: Optimizing the Business Cyberspace Environment and Rectifying Malicious Hype of Corporate Information," focuses on deterring malicious smearing, systemic negative hype, and unlawful profit-seeking masquerading as public supervision. The newly disclosed benchmark cases showcase several prominent patterns of illicit online behavior. In one category, accounts on platforms including Xiaohongshu, Toutiao, Weibo, and Sohu published fabricated negative reports about businesses and subsequently demanded "promotional fees" or coerced firms into commercial agreements when approached to remove the false claims. Regulators confirmed that the implicated accounts have been permanently closed. In another set of cases, regulators took action against accounts on Douyin, WeChat Channels, and Xiaohongshu that persisted in disparaging corporate products and intentionally provoking consumer hostility even after receiving prior administrative penalties. The accounts were shuttered for refusing to rectify their conduct. A third category involved auto-focused accounts on Toutiao, Bilibili, and Weibo that systematically fabricated claims regarding operational crises and product defects timed precisely around corporate product launches. Authorities also penalized accounts on Weibo, Toutiao, and WeChat Channels for systematically scraping and recycling outdated corporate controversies to project an impression of ongoing decline. The regulatory agency emphasized that it will continue targeting destructive competitive practices, including accounts that spread falsehoods to inflame consumer divisions or unfairly damage enterprise goodwill.