Chinese regulators ask platforms to file live streamers’ profits every six month...

Chinese regulators ask platforms to file live streamers’ profits every six months

Live-streaming

Chinese regulators ask platforms to file live streamers’ profits every six months

Zijing Fu

posted on 8 hours ago

Regulators are asking live-stream platforms to take more responsibility in regards to false advertising, selling of counterfeit products, and tax evasion.

Over the past year, the live-streaming shopping industry in China has taken a great hit, as Douyin’s Viya and Kuaishou’s Pingrong, two of the top live streamers in China, were banned due to tax evasion. Viya was ordered to pay 1.34 billion yuan in back taxes, late fees, and fines on December 20 last year, while Pingrong, was fined 62.03 million yuan on February 22 due to tax evasion, according to the tax departments of Guangzhou city.

Not only did the two’s self-made successful image turn into dust, but the events also sparked a public trust fiasco regarding live-streamers and live-streaming shopping platforms.

Regulators in China are trying to curb the issue and put more responsibility on platforms. Recently, the Cyberspace Administration of China(CAC), the State Taxation Administration(STA), and the State Administration for Market Regulation(SAMR) issued a notice "on further standardizing the profit-making behavior of live webcasting to promote the healthy development of the industry”.

As the notice states, live streamers should submit their personal identification information and unified social credit codes. Live streaming platforms should verify those information and submit detailed reports containing live streamers’ identities, accounts, alias, profits, etc.

Also, the notice addressed and banned other problems often seen in the live-streaming industry, such as false advertising, selling of counterfeit products, and self-promoting. Self-promoting is a technique often used by live streamers, who tip or donate to themselves in their own streams, to drive up hype and prompt other viewers to actually tip.

Cover image by Jéan Béller on Unsplash.