Hefei, capital of East China's Anhui province, decided to give a series of punishments to a leading e-commerce company based in the city, according to the local authorities' statement on Thursday night.
The company, Sanzhiyang Network Technology, commissioned by Guangzhou Meisun Food Co Ltd, falsely advertised "Hong Kong Meisun Mooncakes" during a recent live stream, claiming it as a high-end mooncake brand specializing in this product for over 20 years, according to the local government's joint investigation team.
Commissioned by other suppliers, Sanzhiyang company also was accused of providing other low-quality food products during their live stream programs, according to the statement.
In accordance with the Administrative Penalty Law and the Anti-Unfair Competition Law, it is proposed to confiscate the illegal gains of Sanzhiyang company and impose a total fine of 68.9 million yuan ($9.8 million), according to the statement.
In response to the issues identified in the live-streamed sales by the company, they are ordered to suspend operations for a specified period for rectification and bear relevant legal responsibilities.
Units and individuals who were negligent or derelict in their duties during the process will be investigated by the disciplinary and supervisory departments, and dealt with seriously in accordance with the law and regulations, said the joint investigation team's statement.
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