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Beijing’s market authority has called in China’s top five e-commerce giants to address violations spotted in their promotional activities for the 618 shopping festival. The platforms—Taobao and Tmall, JD.com, Pinduoduo, Douyin, and Xiaohongshu—are instructed to correct issues such as false advertising, improper creation and promotion of rules, and failure to disclose merchant information, according to a statement from the city’s Market Regulation department.
China hosts two major shopping festivals annually: 618 in mid-year and Double 11 at year’s end. Originally launched to mark JD.com’s anniversary, 618 has grown into a month-long promotional event that involves all leading online retailers.
During this year’s 618 event, Taobao, Tmall, JD.com, and Pinduoduo promoted a “CNY 10 billion ($1.5 billion)” subsidy campaign. However, the authorities pointed out that these companies could not substantiate claims that they actually invested CNY 10 billion in the promotions.
Douyin and Xiaohongshu also faced criticisms over vague promotional guidelines and insufficient disclosure of details, which hampers consumers’ right to information, the regulators added.
The intense competition among these platforms for subsidies might lead to a kind of cycle that harms industry growth, according to Liu Xiaochun, head of the Internet Law Research Center at the Chinese Academy of Social Sciences. Excessively large subsidies distort market prices and pressure merchants to lower prices just to attract traffic—costing them money, Liu explained. This strategy compresses profit margins and also introduces risks for consumers, as platforms often include disclaimers that may increase confusion or unfair practices.
Regional regulators in provinces such as Zhejiang and Sichuan have also stepped up oversight of 618 promotional activities. Zhejiang’s Market Supervision Office recently organized a special inspection, requiring platforms to clearly communicate promotional policies and prohibiting deceptive tactics like price hikes before discounts or false savings claims.
Zhang Yi, CEO of iiMedia Research, noted that regulatory restrictions this year might lead to changes in promotional rules and subsidy formats, which could dampen price wars. Nonetheless, he warned that some violations might re-emerge once the promos conclude if stronger enforcement isn’t applied. He urged authorities to implement tougher measures, including penalties and routine inspections, to ensure sustainable industry practices.
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