The encyclopedia · Advertising & PR · Marketing decision · 2024–2025
Xinba's Xinxuan fined ¥1.75M for a milk powder that 'cured rhinitis'
Xinba's Xinxuan was fined ¥1.75M for a livestream claiming a milk powder cures rhinitis, fever and athlete's foot — food sold as medicine, again.
Guangzhou Xinxuan Network Information Technology · 2025-01-26
What happened
On October 19, 2024 the top Kuaishou streamer Xin Youzhi — known as Xinba — and his apprentice Dandan hosted a livestream selling 'Hepunuo' modulated milk powder with claims that it could treat rhinitis, fever, athlete's foot, bad breath and urticaria, and sharply improve immunity within two hours. Modulated milk powder is food; none of those are things it does.
Guangzhou's Baiyun District market regulator investigated and on January 26, 2025 fined Guangzhou Xinxuan Network Information Technology — the streamers' selling company, wholly owned by Guangdong Xinxuan Holdings — ¥1.75 million for false commercial advertising. The penalty surfaced publicly in early February 2025.
The fine is small next to what these streams sell in a single night, and the record explains why the model persists: the same operation promoted 'bird's nest' that tested as sugar water in 2020, and its 2025 new-year seafood gift packages drew complaints of leaking black liquid and empty crab shells. Over 800 consumer complaints against 'Xinba livestream' sales are logged on public complaint platforms. Each scandal costs a fine; the audience keeps paying.
Why it happened
- The pitch turned food into medicine — efficacy claims no modulated milk powder can carry, made live to an audience of millions.
- Livestream economics reward the boldest claim at the moment of sale; verification arrives afterwards, if at all.
- Repeat penalties — from the 2020 bird's nest case to this fine — price the behaviour below what the streams earn, so the behaviour continues.
The lesson
When the fine is smaller than one night's sales, it stops being a deterrent and becomes a fee. Platforms that let efficacy claims ride until the regulator catches up subsidise the next false claim.
Aftermath
Xinxuan paid the ¥1.75 million fine and kept streaming, and consumer complaints kept accumulating — over 800 logged against 'Xinba livestream' sales on public complaint platforms. The case joined the 2020 sugar-water bird's nest scandal as the standard example of false advertising in China's livestream trade.
Sources
- The Paper — Xinxuan Group's livestream found guilty of false advertising, Guangzhou regulator fines it ¥1.75M, 2025-02
- 10jqka — Xinba's company fined ¥1.75M for false advertising in livestream sales, 2025-02-06
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Somewhere, someone solved the problem this company failed at. 2nd Opinion →

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