China has issued new regulations to deal with the situation of "ghost" online food stores, requiring sellers on online delivery platforms to have real stores and publicize information if they do not serve customers eating on the spot.
According to new regulations of the State Regulatory Authority of China (SAMR), traders doing business on food delivery platforms must have actual business premises. Facilities that do not provide on-site meal services must also clearly state this information on the platform.
The move was made in the context of fierce competition between food delivery applications that has increased the appearance of "ghost" stores. These establishments have no space to serve customers, are accused of maintaining poor hygiene conditions and circumventing food safety regulations while still operating online like regular restaurants.
Many stores of this type are said to operate in residential areas, using leased business licenses or fake information to be listed on delivery platforms.
According to new regulations, food delivery platforms must review operating traders at least once every 6 months to ensure they are legal entities and have appropriate business licenses. This measure shifts additional food safety assurance responsibilities to delivery applications.
SAMR also strengthens sanctions. Platforms can be fined from one to ten times annual revenue if violations involve business leaders, which are identified as intentional and serious. Meanwhile, violating traders can be fined up to 200,000 yuan.
Previously, in April, SAMR fined 7 major e-commerce platforms with a total amount of 3.6 billion yuan (532 million USD), mainly related to violations related to food delivery activities from "ghost" stores.
Some traders have begun to apply the "transparent kitchen" model, allowing live images from the processing area to reduce consumer concerns about food preparation conditions.
A representative of Taobao - the operator of one of the largest food delivery platforms in China - said that it will increase the display level on the application for traders deploying the "transparent kitchen" model.
Mr. Sun Huichuan - Director of Food Safety of SAMR - emphasized that food delivery platforms cannot only collect commissions without taking responsibility, and must also truly take on the role of "gatekeepers" on food safety in the food delivery industry.
