China Tightens Rules on Live Commerce: AI Hosts Now Come With Accountability
China Implements Sweeping Regulations for Live Commerce
The days of unchecked growth in China's booming live-streaming e-commerce industry are officially over. On January 7th, regulators unveiled comprehensive new rules that reshape how digital storefronts operate.
Clear Rules for All Players
The joint regulations from the State Administration for Market Regulation and Cyberspace Administration establish accountability throughout the live commerce ecosystem:
- Platforms must verify qualifications and protect consumer rights
- MCN agencies face stricter requirements for talent management
- Operators need robust identity verification systems
Perhaps most significantly, platforms must now preserve live streams and transaction records for three years - addressing longstanding challenges in evidence collection.
The AI Host Question Solved
The regulations provide much-needed clarity around digital influencers:
"When viewers interact with what appears to be a human host, they deserve to know if they're actually talking to algorithms," explains e-commerce analyst Li Wei. The rules mandate continuous disclosure during streams featuring AI-generated presenters.
More importantly, operators can no longer use artificial intelligence as a legal shield. If digital hosts violate laws or regulations, their human overseers bear full responsibility.
Enforcement With Teeth
The framework introduces innovative enforcement mechanisms:
- Traffic penalties: Violators face reduced visibility through platform interventions like warnings or suspensions
- Merchant accountability: Businesses can't disappear - platforms must ensure contact information remains current or impose penalties
- Transparency requirements: Consumers gain clearer information about who (or what) they're dealing with online
The changes reflect regulators' growing sophistication in addressing digital commerce challenges while fostering continued innovation.
Key Points:
- Three-year data retention requirement helps preserve evidence
- Digital hosts require clear AI disclosure during streams
- Operators assume legal liability for AI presenter actions
- "Traffic supervision" creates real consequences for violations
- Merchants must maintain accurate contact information
