From one disappointing order to a massive 'ghost cake' delivery scandal in China
7 hours ago
- #Food Safety
- #Ghost Vendors
- #Price Competition
- A nationwide investigation in China uncovered over 67,000 'ghost' food vendors selling millions of cakes through fake licenses and no physical stores, following a customer complaint about a disappointing cake.
- Seven major delivery platforms, including PDD, Alibaba, Douyin, Meituan, and JD.com, were fined a total of 3.6 billion yuan for failing to protect customers and verify vendor licenses, with PDD receiving the largest penalty due to resistance.
- The probe revealed a shadow supply chain where orders were resold on intermediary platforms for low bids, sacrificing food quality and safety, highlighting issues from intense price competition known as 'involution'.
- Regulators faced obstruction from delivery platforms, including employees passing notes to stay silent, violent confrontations, and feigned medical emergencies, complicating the investigation.
- Beijing's anti-involution campaign aims to curb unhealthy price wars that harm quality and profitability, with initial effects noted, though recovery remains distant.