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The encyclopedia · Advertising & PR · Marketing decision · 2024

Xiaoyangge sold ¥3.87M of 'beef rolls' — not original, 42K scammed, 1M followers lost

Wang Hai exposed Xiaoyangge's 'original beef rolls' as not original. Supplier fined ¥500K, 42K buyers, potential ¥42M compensation. 1M followers lost, 30 days.

三只羊 · 疯狂小杨哥

What happened

Crazy Xiaoyangge (疯狂小杨哥) is one of China's top livestream hosts. His company, Three Sheep Network (三只羊网络), has over 100 million followers on Douyin. From November 2023 to February 2024, Xiaoyangge's livestream repeatedly promoted Xianduoyu (鲜多裕) brand beef rolls, claiming they were 'original cut, no additives'. Total sales reached approximately ¥3.87 million, with 42,000 consumers buying the product.

On September 9, 2024, professional consumer watchdog Wang Hai (王海) posted a video exposing that the beef rolls were not original cut as claimed. The Wuhan Qingshan District Market Regulation Bureau had already issued an administrative penalty on July 16, fining the supplier Xianduoyu ¥500,000, confirming the product was not original cut beef and constituted false advertising. Under the 'refund plus ten times' rule, potential compensation could reach ¥42 million.

After the exposure, Xiaoyangge lost over one million followers in 30 days. 36Kr reported that Xiaoyangge had been caught in falsified product claims 10 times in six months — questioning whether this was a quality control failure or a supply chain trap. A livestream empire built on 'family' trust found that when trust is spent, followers leave faster than they came.

Why it happened

  • The livestream claimed 'original cut, no additives' — the product was not original cut beef, making this false advertising.
  • Top host selection and quality control processes failed to identify the supplier's false claims. 42,000 consumers bought a misrepresented product on the strength of the host's credibility.
  • A ¥500,000 fine relative to ¥3.87 million in sales and 100M+ followers meant the cost of non-compliance was negligible.
  • Livestreaming ties host reputation to product quality — a product failure becomes a host credibility failure, and follower trust is lost faster than it was built.
What it costSupplier fined ¥500K; ¥42M compensation; 1M followers lostcostly

The lesson

In livestream, 'family' buys the host's credibility, not the label. When selection skips verification, every sale pledges the host's reputation for the supplier's lie.

Sources

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