Douyin Influencer Agency Faces $9.8 Million Penalty for Misleading Marketing
Douyin Influencer Agency and the Mooncake Scandal
Three Sheep Group, a notable agency on Douyin, has been penalized by authorities with a fine of 69 million yuan (approximately $9.8 million) for its misleading marketing practices regarding mooncakes. This follows accusations of falsely promoting products as ‘made in Hong Kong’ when they were not.
Regulatory Actions and Company Response
The market regulator in Hefei, Anhui province, mandated the suspension of live-commerce operations for the influencer agency. Three Sheep has publicly apologized, pledging to rectify its marketing strategies.
- Founded by Zhang Qingyang, known as Crazy Little Brother Yang.
- Zhang is a leading influencer, reaching 100 million followers on Douyin.
- Mooncakes are traditionally enjoyed during the Mid-Autumn Festival in China.
This incident casts light on broader issues within China's live-streaming and e-commerce sectors, as regulations tighten around such operations.
Industry Implications
In addition to the penalty, Three Sheep has committed to refund customers affected by the misleading mooncake promotion. This serves as a cautionary tale for others in the rapidly expanding live commerce space.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.