Overview
- China’s market regulator fined Pinduoduo, Meituan, JD.com, Taobao Flash (Ele.me), Douyin, Taobao, and Tmall 35.97 billion yuan on Friday, the largest penalty under the Food Safety Law.
- The case started with a cake complaint in Beijing and grew into a 10‑month national probe that found about 67,604 fake or license‑forged shops and more than 3.6 million outsourced cake orders.
- Investigators describe a scheme where sham storefronts used brokers such as Zhuandanbao and Anhui Xunmeng to auction orders to real kitchens, and an official example shows a 252.3 yuan cake left only 76.8 yuan for the actual bakery after fees.
- Regulators say some platforms enabled one‑click brokering through data‑sharing deals with middlemen, and the seven firms now say they have removed unvetted listings and halted those ties.
- Consumer compensation is still unclear, and legal experts note buyers may seek punitive payouts if food failed safety standards or if deception stripped them of the right to know who made their food.