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The encyclopedia · Marketing & Brand · Legal decision · 2025–2026

Kuaishou's 'sales only go up' feature got it fined ¥26.7M for faking data

China's market regulator fined Kuaishou's e-commerce arm ¥26.7M for 7 violations including a feature that fabricated sales data for livestreams.

Kuaishou (快手) · Chengdu Kuaigou Technology (成都快购科技有限公司) · 2025-12

What happened

Kuaishou, one of China's largest short-video and livestream platforms, built a massive e-commerce business through its subsidiary 快手小店 (Kuaishou Shop). By 2025 it was the country's second-largest livestream e-commerce platform behind Douyin, with hundreds of billions in annual GMV. But its rapid growth masked systemic compliance failures.

In December 2025, the State Administration for Market Regulation imposed a fine of ¥26.69 million on Kuaishou's e-commerce subsidiary for seven categories of violations. Among them was a feature that displayed sales data as 'only going up' — showing fabricated transaction volumes that never decreased, helping merchants and livestreamers inflate their performance metrics to deceive consumers.

Other violations included failure to properly display business licenses, charging unreasonable penalty fees to merchants, not removing unsafe or infringing products, lax advertising review for health and medical products, and facilitating illegal wildlife product sales. The regulator described the fine as part of a broader push to hold livestream platforms accountable for what happens on their services.

Why it happened

  • Kuaishou prioritized GMV growth over compliance — the 'only goes up' feature was a deliberate engineering choice to inflate sales data
  • The platform's rapid expansion left it with weak content moderation and merchant vetting systems
  • China's regulators specifically targeted livestream e-commerce in 2025–2026, making Kuaishou a test case for platform accountability
What it cost¥26.7M fine; full regulatory review of its e-commerce modelcostly

The lesson

When a platform engineers a feature to deceive its own customers, it is not a compliance gap — it is a business model built on fraud.

Aftermath

Kuaishou was ordered to rectify all violations. The fine was part of a broader regulatory campaign that also included increased scrutiny of Douyin and other livestream platforms. Kuaishou's e-commerce GMV growth had already slowed to 17.6% in mid-2025, and the regulatory crackdown added further pressure on the segment.

Sources

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