Market regulators, law enforcement take swift action against businesses violating consumer rights after 3.15 gala
Market regulators and law enforcement in multiple Chinese cities acted overnight against businesses exposed during China's annual 3.15 Consumer Rights Gala, which highlighted a range of consumer rights violations.
Experts said the swift actions by authorities demonstrate the impact of media oversight and public scrutiny within the legal framework. Apart from the annual 3.15 gala functioning as an important node, a long-term mechanism should be established to fight consistently against misconduct infringes consumers' rights and interests.
The two-hour prime-time show by China Central Television (CCTV) exposed a number of brands and companies for misconduct ranging from the lack of hygiene in the processing of substandard disposable products such as sanitary towels and disposable diapers, excessive use of phosphate-based water-pretention agents in shrimp processing, overly charged repair fees and illegal high-interest online loans to personal data leaks, AI harassment calls, online lotteries, and the manufacture and sales of wires and cables that fail to meet national standards, which pose serious risks to consumers' health and property safety.
The event quickly trended on major Chinese social media platforms, prompting several implicated companies to issue responses overnight, while local regulators and law enforcement launched immediate investigations.
China's State Administration for Market Regulation announced on late Saturday night that market watchdogs in localities took actions overnight, pledging severe penalties for violations such as substandard shrimp processing and faulty wires and cables, with investigation results to be disclosed publicly.
China's Ministry of Industry and Information Technology released early Sunday morning a notice that the authority had taken actions overnight to deploy local communication administrations in Beijing, Shanghai, South China's Guangdong Province, and other regions to investigate and handle the suspected violations such as illegal and spoofed robocalls fueled by AI phone bots and inadequate implementation of real-name verification by virtual telecom operators. It ordered telecom providers to shut down implicated lines, review personal data practices and remove illegal AI call center software from online platforms.
To address the evolving methods used to infringe on consumer rights — especially in the digital era, where criminals use technology and digital tools to intensify their activities — constant exposure of such misconduct is necessary, Bai Ming, a research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Sunday.
In one case, the gala exposed Liangshan Xixi Paper Products, a waste recycling company in Jining, Shandong Province, for allegedly purchasing defective sanitary napkins and baby diapers from well-known brands, repackaging them, and reselling them at inflated prices — from 260 yuan ($36) per ton to as much as 8,000 yuan per ton.
The Jining Administration for Market Regulation released a statement on Saturday night that a joint investigation team had been set up by local authorities, sealing up the involved company and detaining responsible personnel in accordance with the law. A thorough investigation is ongoing, with the provincial task force also arriving to oversee the probe.
In response to concerns over disposable underwear factories in Shangqiu, Henan Province, where manufacturers allegedly used substandard materials and bypassed sterilization, despite their product labels suggesting otherwise, a joint task force formed by the local market watchdog and health authority had sealed off the involved companies and conducted on-site sealing of all finished products, semi-finished products and raw materials, with further strict investigations and actions to be carried out in accordance with laws and regulations, CCTV reported.
Meanwhile, multiple brands allegedly involved - including Sofy, Freemore and Purcotton - have declared zero tolerance for the "illegal recycling, refurbishing and sales of defective products." They have launched internal investigations under regulatory guidance and pledged full cooperation with authorities, The Beijing News reported on Sunday.
Following consumer complaints about unnecessary repairs, inflated charges and fraud, the Chongqing Administration for Market Regulation launched an investigation into Zhuomuniao, China's largest home appliance maintenance platform, to conduct investigations on the issues concerning commission rules for repair workers, employee training, publicity, marketing and the quality of replacement parts, CCTV reported.
Zhang Yi, CEO of iiMedia Research Institute, said the 3.15 gala has been a strong deterrent against illegal activities in recent years. He added that ongoing campaigns, coupled with law enforcement, should increase public awareness of consumer rights and curb infringements.