A Hefei joint investigation team declared on Sunday that the e-commerce company Three Sheep Group, which had come under investigation last year for misleading consumers during live-streamed sales, has met the necessary requirements for rectification and fit to resume operations.
In October 2024, the company paid a fine of 68.95 million yuan ($9.5 million) in full, according to the investigation team. They have also compensated a total of 27.78 million yuan for products implicated in the case, including "Hong Kong Meicheng Mooncakes" and "Australian Grain-Fed Beef Rolls".
According to earlier reports, the company had deceived customers during live-streamed sales of a mooncake brand, which caused a stir as despite its Hong Kong-suggestive name, no physical stores were located in Hong Kong, with packaging revealing production in Guangzhou and Foshan, Guangdong province.
The company will continue to uphold the principle of full compensation, implementing a policy of refunding three times the purchase price to ensure proper handling of refunds and compensations, the investigation team said.
Addressing concerns regarding product selection and quality control, promotional activities, after-sales services, and internal management, the investigation team provided guidance to the company in making 89 specific rectification measures and emphasized the importance of effectively implementing these changes.
It also urged the company to reflect on inappropriate behaviors during previous live-streamed sales, adhere to requirements for online civility, enhance the management of hosts and live events, strengthen social responsibility and cultivate a positive image.
