Regulators Summon JD Takeout Over Low-Quality, Cut-Rate Merchant Practices Disrupting Market Order

Sichuan regulators summoned JD Delivery executives to address operational violations impacting market integrity and consumer trust. Issues included mismatched merchant addresses, unauthorized business expansions, and unfair pricing. Authorities mandated immediate platform reforms, stricter oversight, and compliance with ethical practices. JD pledged enhanced vendor vetting, real-time audits, and expanded use of livestreamed “Transparent Kitchens” for accountability. This follows broader regulatory actions against China’s food delivery sector, including Meituan and Ele.me, amid concerns over monopolistic practices and labor standards.

By CNBC AI News, May 23 – Chinese regulators in Sichuan’s Tianfu New District have summoned executives from JD’s food delivery platform for corrective talks, citing operational irregularities that threaten market integrity and consumer trust.

During the regulatory meeting, officials from the Tianfu New District Market Supervision and Administration Bureau outlined multiple violations by merchants operating on “JD Waimai” (JD Delivery). Key issues included discrepancies between online business addresses and physical store locations, unauthorized expansion of business scope by vendors, and unfair pricing practices that undercut market stability through low-quality, low-cost competition.

The bureau demanded JD’s delivery arm conduct an immediate overhaul of its oversight systems, urging the platform to implement “comprehensive self-inspections” and rectify violations “without delay.” Authorities emphasized the need for ethical business practices, fair competition, and enhanced protections for consumers, merchants, and delivery personnel to foster safer and more transparent growth in China’s booming online food sector.

In response, JD Delivery’s Southwest China regional head pledged to strengthen compliance measures, including stricter vendor qualification reviews and real-time operational audits. The company also committed to accelerating its “Transparent Kitchen” initiative, which livestreams restaurant food preparation areas to bolster accountability.

The scrutiny follows broader regulatory pressure on China’s food delivery giants. Earlier this year, JD, Meituan, and Alibaba-owned Ele.me faced similar talks with national regulators, signaling tighter oversight of the $80 billion industry amid concerns over data monopolies and labor practices.

JD Delivery faces regulatory scrutiny over merchant compliance issues

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