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The encyclopedia · Advertising & PR · Marketing decision · 2024

Xiaoyangge fined ¥68.9M for selling 'Hong Kong' mooncakes made in Guangzhou

A top livestream host sold 'Hong Kong' mooncakes made in Guangzhou. Regulators fined Three Sheep ¥68.95M and suspended it.

三只羊 · 疯狂小杨哥 · 2024-09-26

What happened

In the run-up to Mid-Autumn Festival 2024, top livestream host Crazy Xiaoyangge (疯狂小杨哥) sold 'Hong Kong Meicheng' mooncakes on his channel, telling viewers they came from 'a big brand that has specialised in premium mooncakes for nearly 20 years'. The products were in fact made in Guangzhou and Foshan, not Hong Kong.

After the misrepresentation was exposed, mooncake sales had briefly passed ¥50 million. Douyin's e-commerce safety centre suspended Three Sheep Network's accounts from September 21. On the evening of September 26 the Hefei joint investigation team announced penalties: confiscation of illegal gains plus fines totalling ¥68.9491 million, and an order to suspend operations pending rectification. Three Sheep issued a public apology.

The brand-side bill: China's best-known livestream empire paid nearly ¥69 million and lost its platform access for one false heritage claim, while customer service promised refund-plus-three for the mooncakes. A trust-based selling machine found that a single misrepresented product converts follower trust into multiplied liability.

Why it happened

  • The stream claimed a Hong Kong premium brand with 20 years of history; the product was made in Guangzhou and Foshan.
  • The Hefei joint investigation team imposed the maximum-style penalty: ¥68.9491 million plus a suspension order.
  • Douyin suspended Three Sheep's accounts three days before the official penalty, so platform and regulator acted together.
  • The refund-plus-three promise spread the loss across every buyer of the season's best-selling gift item.
What it cost¥68.95M fine; suspension; mass unfollowingcostly

The lesson

A livestream empire sells trust as much as product. Claiming a foreign heritage for a local product is a bet the audience never checks — and the regulator does.

Aftermath

Three Sheep issued a public apology and accepted the penalty, and customer service began refund-plus-three on Meicheng mooncake orders. The company later resumed operations after completing the required rectification.

Sources

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