JD Executive Fined 65,000 Yuan in "Ghost Kitchen" Crackdown

Deep News04-17 18:13

On April 17, the State Administration for Market Regulation issued administrative penalties against seven e-commerce platforms, including Shanghai Xunmeng Information Technology Co., Ltd. (Pinduoduo), Beijing Sankuai Technology Co., Ltd. (Meituan), Beijing Jingdong 360 Du E-commerce Co., Ltd. (JD.com), Shanghai Lazasi Information Technology Co., Ltd. (formerly Ele.me, now Taobao Quick Buy), Beijing Douyin Technology Co., Ltd. (Douyin), Zhejiang Taobao Network Co., Ltd. (Taobao), and Zhejiang Tmall Network Co., Ltd. (Tmall), for their involvement in "ghost kitchen" operations. The penalties were based on Article 131 of China's Food Safety Law and Article 83 of the E-commerce Law. The seven platforms were ordered to rectify violations, suspend new cake shop registrations for three to nine months, and pay total fines and confiscations amounting to 35.97 billion yuan. Additionally, under Article 75 of the Food Safety Law Implementation Regulations, fines totaling 19.6874 million yuan were imposed on the legal representatives and food safety directors of the seven companies.

The administrative penalty decision document, numbered Guo Shi Jian Chu Fa [2026] No. 6, identified Xue Jian as the subject of penalties. Beijing Jingdong 360 Du E-commerce Co., Ltd. was found to have failed in conducting due diligence on merchant qualifications. The investigation began on November 20, 2025, after Xue Jian was appointed as the company’s food safety director in August 2025. Evidence was gathered through platform data checks, interviews, income verification, and electronic records.

As an online food trading platform, JD.com did not fulfill its obligation to review merchant licenses. The company’s violations were prolonged, involved numerous shops, posed significant food safety risks, and were deemed "egregious" under the law.

Xue Jian, as the directly responsible executive, received a fine of 65,000 yuan based on his role and the severity of the violations. He must pay the fine within 15 days via designated banks. Failure to pay will result in a 3% daily late fee and possible court enforcement. Xue Jian may appeal via administrative reconsideration within 60 days or file a lawsuit within six months.

Penalties will be enforced during appeals.

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