China's livestream e-commerce market reached over $644 billion in 2024, making up nearly one-third of all online sales in the country. With this rapid growth came problems like false marketing, fake products, and misleading claims. The Chinese government responded by introducing strict new compliance rules that changed how platforms, sellers, and agencies must operate.

Starting in 2025, China implemented comprehensive regulations that require livestream platforms to verify seller credentials, moderate content in real-time, archive all broadcasts for at least three years, and take direct responsibility for violations that occur on their platforms.

These rules affect everyone involved in livestream selling, from individual hosts to major e-commerce companies. If you sell through livestreaming in China or work with Chinese platforms, understanding these requirements is now essential to avoid penalties and stay in business.

For sellers and brands, this means stricter verification, clearer advertising rules, and better consumer protection standards every time you go live.

Key Takeaways

• China's new livestream selling rules require platforms to verify sellers, moderate content, and keep recordings for three years
• Platforms now share legal responsibility for violations, forcing them to invest heavily in compliance teams and systems
• Sellers must follow stricter advertising standards and consumer protection requirements to avoid penalties and maintain access to the market

Foreign companies entering livestream e-commerce need broader tech compliance knowledge. Review our article,Compliance in China's Tech Industry: A Guide for Foreign Investors to understand how tech regulations apply to livestream selling.

What Is China Livestream Selling Compliance?

China's government is creating specific rules for livestream e-commerce to protect consumers and standardize business practices across platforms. These regulations define who is responsible for compliance and what requirements each party must meet.

Definition and Scope of Livestream E-Commerce Compliance

Livestream e-commerce compliance refers to the legal requirements that platforms, hosts, and businesses must follow when selling products through live video broadcasts in China. This includes verifying seller qualifications, ensuring accurate product descriptions, and maintaining proper records of transactions.

The scope covers advertising standards, consumer protection laws, and platform-specific rules. Compliance extends to how you present products, the claims you make during broadcasts, and how you handle customer service after sales.

The regulatory framework applies to all participants in the livestream selling ecosystem, including platforms, hosts, brands, and multi-channel network agencies.

Regulatory Drivers Behind Compliance

The State Administration for Market Regulation leads the effort to regulate livestream e-commerce in China. The agency drafted new measures to address the rapid growth of this industry, which has transformed how Chinese consumers shop online.

China's government prioritizes boosting domestic consumption as a key economic goal for 2025. Strong compliance rules help build consumer trust and support sustainable growth in the livestream e-commerce sector.

Consumer protection is central to these regulatory efforts. Past issues with misleading claims, fake products, and poor customer service pushed authorities to create clearer standards. The regulations aim to prevent deception while allowing the industry to grow.

Key Stakeholders in the Compliance Ecosystem

Livestream e-commerce platforms bear primary responsibility for compliance. You must verify seller qualifications, monitor broadcasts for violations, and remove illegal content. Platforms need systems to track and report problematic activities.

Hosts and livestream channel operators must follow advertising laws and accurately represent products. You cannot make false claims or mislead viewers about product features, prices, or availability.

Multi-channel network agencies that manage hosts share compliance responsibilities. These agencies must ensure their talent understands and follows all relevant regulations.

Brands and merchants selling through livestreams must maintain proper business licenses and product certifications. You remain responsible for product quality and fulfilling consumer protection obligations under China's E-Commerce Law.

Livestream sellers must understand foundational laws governing their operations. Read our guide on China's Legal Framework for Foreign Business Operations to learn how national regulations structure livestream compliance obligations.

Core Regulatory Framework

China's livestream e-commerce sector operates under a multi-layered regulatory system that includes draft national measures, regional guidelines, and existing commercial laws. The State Administration for Market Regulation (SAMR) and Cyberspace Administration of China (CAC) jointly oversee compliance requirements for platforms, hosts, and agencies.

Draft Measures for Livestream E-Commerce

The Draft Measures represent the first comprehensive national-level framework specifically targeting livestream e-commerce. SAMR and CAC released these proposed regulations in June 2025 to address widespread issues like false advertising, counterfeit products, and data fraud. The draft establishes clear legal obligations across five categories of participants: platforms, livestream room operators, hosts, Multi-Channel Network (MCN) agencies, and sellers.

These measures require platforms to strengthen moderation teams based on their transaction volume. Platforms must also archive all livestream recordings for at least three years. The framework covers new technologies including AI digital avatars and AI-generated videos used in livestream sales.

The draft assigns end-to-end compliance responsibilities. Platforms must cooperate with regulators to remove violations immediately. Each participant category faces specific duties that create comprehensive accountability throughout the livestream sales process.

National and Local Guidelines

Beyond the draft measures, you must comply with regional frameworks like the Hangzhou Guidelines, which provide localized interpretations for high-volume e-commerce cities. These local guidelines often include stricter enforcement mechanisms and faster response requirements for consumer complaints.

National guidelines from SAMR and CAC work together to create unified standards across provinces. The CAC focuses on content lawfulness and data protection while SAMR handles market behavior and consumer protection. You need to monitor both agencies for updates since they regularly issue joint statements on compliance expectations.

Applicable Laws and Standards

Your livestream operations must comply with multiple existing laws:

• E-Commerce Law: Governs platform responsibilities, seller registration, and consumer rights
• Advertising Law: Regulates promotional claims, endorsements, and prohibited advertising content
• Anti-Unfair Competition Law: Addresses fake transactions, false reviews, and deceptive sales tactics
• Price Law: Controls pricing disclosure, manipulation, and discount authenticity

These laws apply to livestream commerce even though they predate the format. The draft measures clarify how traditional commercial laws work in livestream contexts. You face enforcement from multiple regulatory bodies depending on which law you violate.

Livestream sellers sourcing products must ensure compliance. Explore our guide, Manufacturing in China: Understanding Industry-Specific Regulations, to verify products meet industry standards required by livestream platforms.

Roles and Responsibilities in Compliance

China's livestream e-commerce regulations assign specific duties to each participant in the ecosystem. Platform operators must verify identities and screen content, while MCN agencies handle host training and partnership oversight.

Livestream Hosts and Identity Verification

You need to complete identity verification before you can start selling through livestreams in China. This process requires you to submit valid identification documents to the platform or agency you work with.

Your responsibilities include following platform policies and local regulations during every broadcast. You must avoid making false claims about products or engaging in deceptive marketing practices. The regulations require you to disclose your real identity to viewers and maintain transparency about sponsored content.

If you use AI-generated content or digital avatars during your livestreams, you must clearly label them as AI-powered. You need to notify consumers consistently throughout the broadcast that they are interacting with artificial intelligence rather than a human host.

E-Commerce Platform Operators and Platform Liability

Platform operators carry primary responsibility for maintaining compliance across their livestream services. You must screen all merchants before allowing them to sell on your platform and conduct regular reviews of their qualifications.

Your duties include:

• Merchant screening - Verify business licenses and product certifications
• Host training - Provide compliance education to all livestream sellers
• Content monitoring - Review livestreams for violations in real-time
• Self-inspections - Conduct regular audits of your platform's compliance

You face liability for violations that occur on your platform if you fail to implement proper screening and monitoring systems. The regulations require you to establish clear processes for handling consumer complaints and removing non-compliant content quickly.

MCN Agencies and Livestream Marketing Service Agencies

Your agency must standardize recruitment, training, and management processes for all hosts you represent. You need to verify the qualifications of hosts before signing them and ensure they understand compliance requirements.

The regulations hold you responsible for overseeing commercial partnerships and product selection. You must conduct qualification reviews of brands and products before your hosts promote them during livestreams. This includes verifying product certifications, checking business licenses, and ensuring all marketing claims can be substantiated.

You need to maintain updated contracts with hosts that specify prohibited content and compliance obligations. Your contracts should include provisions for real-time content monitoring and approval rights over livestream scripts.

Livestream Room Operators and Marketing Personnel

You must improve information disclosure practices and implement pre-compliance reviews for all content. This means checking product claims, verifying promotional materials, and ensuring all required disclosures appear during broadcasts.

Your responsibilities include maintaining accurate records of all livestream sessions and the products featured. You need to coordinate with platform operators to address compliance issues immediately when they arise during live broadcasts.

If you work as marketing personnel supporting livestream operations, you share responsibility for ensuring content meets regulatory standards. You must help verify product information and assist with real-time monitoring during broadcasts to catch potential violations before they reach viewers.

Before launching livestream operations, conduct a compliance audit. Review, Company Health Check China: Financial, Legal & Compliance Audit to identify compliance gaps in your livestream business model.

Content Governance and Consumer Protection

China's regulatory framework for livestream e-commerce addresses challenges in advertising integrity, product authenticity, and consumer rights enforcement. The Cyberspace Administration of China (CAC) and State Administration for Market Regulation (SAMR) work together to establish content governance standards and protect buyers from fraudulent practices.

False Advertising and Deceptive Practices

You must ensure your livestream content doesn't mislead viewers about product features, benefits, or specifications. Chinese regulators have identified false advertising as a primary concern in the livestream sector.

SAMR monitors claims made during broadcasts and holds both streamers and platforms accountable for deceptive statements. This includes exaggerated performance claims, manipulated before-and-after demonstrations, and misleading product comparisons.

Deceptive pricing strategies also fall under scrutiny. You can't inflate original prices to make discounts appear larger than they actually are. Flash sales and limited-time offers must reflect genuine price reductions.

The regulations require you to provide accurate information about product origins, ingredients, and certifications. If you make health or safety claims, you need documentation to support them. Violations can result in fines, broadcast suspensions, or permanent bans from platforms.

Counterfeit Goods and Product Vetting

Product vetting has become a mandatory requirement for livestream platforms. You need to verify the authenticity of goods before promoting them to your audience.

Counterfeit goods are a persistent problem in China's livestream market. Platforms must implement product inspection systems to prevent fake items from reaching consumers. This includes checking supplier credentials, examining product certificates, and maintaining records of sourcing documentation.

Your responsibility extends to understanding what you're selling. You should request authentication documents from suppliers and conduct quality checks when possible. Many platforms now require sellers to submit product samples and certification paperwork before approval.

If counterfeit goods reach consumers, both you and the platform face liability. The regulations establish clear accountability chains that trace problems back to their source.

Protection of Consumer Rights

Consumer rights protection forms the backbone of China's livestream e-commerce regulations. You must respect return policies, refund requests, and dispute resolution procedures.

Your broadcasts need to clearly state terms of sale, including shipping costs, return windows, and warranty information. You can't hide important details in fine print or rush through disclosures. Consumers have the right to accurate product information before making purchase decisions.

Platforms must establish customer care systems and dispute resolution teams. When problems arise, you need to respond promptly to consumer complaints. The regulations mandate specific timeframes for addressing refund requests and handling defective product claims.

Consumer restoration roles now include recall coordination for problematic items. If a product poses safety risks, you must cooperate with platform-wide removal efforts and customer notification processes.

Content Moderation and Real-Time Monitoring

Real-time monitoring systems track your broadcasts as they happen. Platforms use both automated tools and human reviewers to catch violations during live sessions.

You need to understand the livestream error correction mechanism. If you make a mistake during a broadcast, you must correct it immediately and clearly. Platforms may intervene to halt streams that violate content standards or consumer protection rules.

Archival systems record all broadcast content for future review. These recordings serve as evidence in disputes and regulatory investigations. You should maintain your own records of what products you promoted and what claims you made.

Content governance extends beyond the live broadcast. Recorded streams, product descriptions, and promotional materials all fall under regulatory oversight. Your compliance obligations continue even after the stream ends.

Since livestream selling relies on promotional claims, advertising compliance is critical. Check out, Advertisement Law Compliance in China: Key Points for Businesses

 to understand how advertising standards apply to livestream broadcasts.

Compliance Mechanisms and Enforcement

China's livestream e-commerce regulations establish enforcement tools to monitor platform behavior and punish violations. These mechanisms create accountability through shared data systems, violation records, coordinated agency responses, and documentation requirements.

Hierarchical Supervision and Information Sharing

The State Administration for Market Regulation leads enforcement efforts, working with the Cyberspace Administration of China and local market regulators. This forms a three-tier system: national agencies set standards, provincial offices coordinate enforcement, and local bureaus conduct inspections.

Information sharing between agencies allows regulators to track violations across jurisdictions. When an agency discovers false advertising or counterfeit products, it reports findings to a central database accessible by other regulators. This prevents violators from moving operations to avoid detection.

The system requires platforms to report suspicious activity to regulators within specified timeframes. You must provide transaction data, user complaints, and internal investigation results when requested by authorities.

Blacklist Systems and Cross-Platform Blacklist

Serious violations result in placement on official blacklists that restrict your ability to operate in livestream e-commerce. These lists include merchants who sell counterfeit goods, streamers who make false claims, and platforms that fail their supervision duties.

The cross-platform blacklist means a violation on one platform affects your standing across the industry. If Douyin blacklists you for price manipulation, Kuaishou and other platforms must also restrict or ban your account. This prevents bad actors from continuing operations by switching platforms.

Blacklist entries remain public for set periods, typically ranging from six months to permanent bans depending on violation severity. Your business license information, violation details, and penalties appear in government databases that consumers and business partners can search.

Joint Investigations and Error Correction

Multiple regulatory agencies can launch joint investigations when violations involve several legal areas. A case involving both food safety issues and false advertising might trigger coordination between market regulators, food safety authorities, and cyberspace officials.

These investigations pool resources and expertise from different agencies. You may face simultaneous inspections of your warehouse operations, advertising content, and platform compliance systems. The agencies share evidence and coordinate penalties to address all aspects of the violation.

Regulators also provide error correction opportunities for minor violations. You can avoid fines by immediately fixing issues, removing problematic content, and implementing prevention measures. This only applies to first-time, less serious infractions that don't harm consumers.

Transaction Record-Keeping and Data Security

You must maintain detailed transaction records for all livestream sales, including product information, pricing, promotional claims, and customer interactions. These records must remain accessible for at least three years to support regulatory audits and consumer dispute resolution.

Technical monitoring systems track your compliance in real-time. Platforms use automated tools to scan streams for prohibited products, misleading claims, and pricing violations. You need systems that capture video archives, chat logs, and sales data.

Data security requirements protect consumer information collected during livestream transactions. You must implement encryption, access controls, and breach notification procedures. Regulators conduct security audits and impose penalties for data leaks or unauthorized information sharing.

Livestream platforms collect consumer data requiring strong data protection. Read our article, Chinese Cybersecurity Law and Regulations: What You Need To Know, to understand data security obligations for livestream operations.

Emerging Trends and New Compliance Challenges

China's livestream commerce regulations are expanding to address new technologies and business models. Platforms and sellers now face stricter oversight around AI-generated content, major promotional events, international sales, and product vetting processes.

Governance of Generative AI and Virtual Hosts

Virtual hosts powered by generative AI are becoming common in Chinese livestream selling. These digital avatars can broadcast continuously without breaks, but they create new compliance questions about transparency and accountability.

You must clearly disclose when a virtual host is AI-generated rather than a real person. Regulators worry that viewers might not realize they're watching an artificial presenter, which could affect their purchasing decisions. The AI systems must also follow the same advertising rules as human hosts, including avoiding false claims and exaggerated product descriptions.

Your platform is responsible for content created by virtual hosts. If an AI presenter makes misleading statements, you can face penalties even though no human directly spoke the words. You need systems to monitor and control what your virtual hosts say during broadcasts.

High-Impact Livestreams and Large-Scale Events

Large promotional events like Double Eleven (Singles' Day) create massive traffic and sales volumes that require special compliance attention. These high-impact livestreams often feature celebrity hosts and can generate millions in transactions within hours.

You must prepare additional compliance measures for major shopping festivals. This includes extra staff to monitor streams in real-time, stronger systems to prevent website crashes, and backup plans for handling customer complaints. Your inventory claims must be accurate because false scarcity tactics are specifically prohibited.

Price manipulation during these events draws regulatory scrutiny. You cannot artificially inflate prices before a sale to make discounts look bigger than they are. All promotional claims need documentation that proves their accuracy.

Cross-Border E-Commerce Compliance

Cross-border e-commerce through livestreaming connects Chinese buyers with international products, but it adds layers of regulatory complexity. You must navigate customs regulations, import restrictions, and product safety standards from multiple countries.

Your cross-border streams need clear disclosure about product origin, shipping times, and potential customs duties. Buyers must understand they're purchasing imported goods that may take longer to arrive. You're responsible for ensuring imported products meet Chinese safety and quality standards, even if they're manufactured elsewhere.

Tax compliance becomes more complicated with international transactions. You need proper documentation for customs clearance and must collect appropriate taxes based on product categories and values.

Commodity Selection and Qualification Review Mechanisms

Platforms now face requirements to implement formal commodity selection mechanisms before products appear in livestreams. You must review seller qualifications and product certifications before allowing them on your platform.

Your qualification review process should verify business licenses, product quality certificates, and brand authorization documents. For regulated categories like cosmetics, food, or medical devices, you need additional verification of industry-specific permits. This pre-screening helps prevent counterfeit and substandard products from reaching consumers.

You must maintain records of your review process. Regulators can request documentation showing how you vetted sellers and approved their products. Regular re-verification is necessary since licenses and certifications expire.

Conclusion

China's livestream e-commerce regulations demand comprehensive compliance from platforms, hosts, and sellers. With platforms now sharing legal liability, real-time content moderation requirements, and mandatory three-year broadcast archiving, the regulatory landscape has fundamentally shifted.

Success in this $644 billion market requires understanding verification processes, advertising standards, consumer protection obligations, and emerging challenges like AI-generated content oversight. 

Consult China Legal Experts for professional guidance to help you implement proper qualification reviews, establish compliant operational procedures, and navigate both national and regional regulatory frameworks to protect your business while accessing this massive market opportunity.

Frequently Asked Questions

What are the regulatory requirements for conducting live-stream sales in China?

Livestream e-commerce platforms must verify the qualifications of all operators and hosts before allowing them to sell products. You need to submit detailed information about your business operations to the relevant authorities.

Platforms are required to monitor and address any illegal activities that occur during livestreams. The regulations define specific legal responsibilities for platforms, livestream channel operators, hosts, and multi-channel network agencies.

You must ensure compliance with rules that aim to prevent false marketing and counterfeit product sales. These measures require you to maintain accurate records of all transactions and product information shared during livestreams.

How does China's Advertising Law affect live-stream selling platforms and hosts?

China's advertising regulations apply directly to content shared during livestream sales events. You must ensure all product claims are truthful and can be verified with evidence.

Hosts cannot make exaggerated statements about product benefits or use misleading comparisons. The regulations prohibit false marketing tactics that could deceive consumers about product quality or features.

You are responsible for ensuring that any promotional content follows advertising standards for specific product categories. Medical products, food items, and financial services have additional restrictions on how you can present them during livestreams.

What are the necessary steps for foreign businesses to comply with China's e-commerce live-streaming regulations?

Foreign businesses need to establish a legal entity or work with qualified partners in China to conduct livestream sales. You must register your business with Chinese authorities and obtain the necessary e-commerce licenses.

Your company needs to hire or contract with hosts who understand and can comply with Chinese regulations. You should implement systems to verify product authenticity and maintain quality standards that meet Chinese requirements.

You must set up compliance teams that include content moderators and officers who understand current regulations. These teams monitor livestreams in real-time to prevent violations before they occur.

Which government bodies oversee and enforce compliance for live-stream sales in China?

The State Administration for Market Regulation serves as the primary authority for livestream e-commerce oversight. This agency develops and enforces rules that govern how platforms and sellers operate.

The Cyberspace Administration of China works alongside market regulators to monitor online activities. You need to comply with requirements from both agencies to legally conduct livestream sales.

Local authorities in cities like Beijing may issue additional guidelines that apply to livestream activities in their jurisdictions. You must follow both national regulations and any regional rules that apply to your operations.

What penalties do entities face for non-compliance with China's live-stream selling rules?

Platforms face mandatory shutdown of illegal livestream activities when violations are detected. You can receive fines based on the severity and frequency of regulatory breaches.

Your business may lose its license to operate livestream e-commerce if you fail to address compliance issues. Repeat offenders face increased penalties and potential permanent bans from the industry.

Hosts and agencies involved in violations share legal responsibility with platforms. You could face personal liability if you knowingly participate in activities that violate consumer protection laws.

Can international brands participate in live-stream selling within China, and what are the guidelines?

International brands can join China's livestream e-commerce market through approved channels. Work with platforms that have the right licenses and follow local regulations.

Products must meet Chinese safety and quality standards before being sold in livestreams. Provide clear documentation about product origins and certifications.

Partner with hosts and agencies familiar with compliance for foreign brands. Stay updated on regulatory changes and adjust your operations as needed.

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