Summary of the Key Points
This news report focuses on the efforts made by the State Administration for Market Regulation to completely eliminate the problem of “ghost food delivery” – unlicensed and fraudulent businesses operating without proper credentials. The administration is vigorously promoting the verification of electronic licenses for online catering services. By utilizing technology (such as electronic ID cards, direct data connectivity, and facial recognition) along with new regulations (Order No. 123), the approach has shifted from a passive supervision model (where issues are addressed only after consumer complaints) to an active one where businesses are automatically verified upon registration. The pilot program in Shanghai has been successful, and this initiative is set to be rolled out nationwide to make food delivery safer.
Detailed Explanation
1. What is “ghost food delivery,” and how dangerous is it?
“Ghost food delivery” refers to unlicensed businesses without a physical storefront that use fake credentials, impersonate other companies’ licenses, or provide fictitious addresses to appear as legitimate establishments on delivery platforms. The food provided by these businesses may be unsafe, potentially causing digestive issues or even poisoning. This represents one of the biggest risks in the online catering industry:
- Statistics speak for themselves: Nearly 90% of consumers place orders for food delivery at least twice a month, with millions of orders generated daily. However, “ghost stores” are hidden among them. Recently, the State Administration for Market Regulation imposed fines totaling 3.597 billion yuan on seven platforms (the largest fine since the implementation of the Food Safety Law), and there were over 67,000 such “ghost stores” specifically in the cake category!
2. How does electronic license verification help identify these fraudulent businesses?
Electronic licenses act as tamper-proof digital IDs for businesses. Platforms and regulatory authorities can directly access this information, making it impossible to use fake credentials:
- Preventing fraud at the source: Businesses must have their legal representatives authorize registration through facial recognition to prevent someone else from using their credentials to open a store.
- Direct data connectivity: Regulatory authorities send electronic licenses directly to platforms, eliminating the need for businesses to submit photos (which could be manipulated).
- Electronic address verification: The system compares the actual business address with the addresses provided by the platform and the delivery drivers; if any discrepancies are found, the business cannot operate.
- Consumers can check: Businesses’ electronic licenses are displayed on the platforms, allowing customers to verify their authenticity before placing orders.
3. A significant change in regulatory approach: From post-fault punishment to pre-emptive measures
In the past, the detection of “ghost food delivery” relied entirely on consumer complaints, with authorities only intervening after reports were made. With electronic licenses, fraudulent businesses are identified from the very first step of registration:
- Increased responsibility for platforms: If a platform allows a fake-licensed business to operate, it is considered a violation of the law and subject to severe penalties.
- Automated verification: The use of electronic licenses eliminates human errors; even with millions of businesses, all can be effectively managed without oversight.
4. New regulations and digital enforcement: Making Order No. 123 more effective
Effective June 1st, the “Regulations on Online Catering Service Operators’ Responsibility for Food Safety” (Order No. 123) came into effect, requiring platforms to ensure that businesses meet safety standards. The verification of electronic licenses turns these legal requirements into a practical mechanism for ensuring compliance:
- Real-time monitoring: Systems continuously monitor business credentials and issue alerts when they expire; platforms must remove such businesses immediately.
- Proactive action: If regulatory authorities identify problematic businesses, they directly inform the platforms, which then take immediate action.
- Widespread adoption of electronic licenses: To date, 124 million businesses across the country have downloaded and used electronic licenses, providing a basis for verifying the authenticity of their operations.
5. Pilot programs and future plans: The goal is to eliminate “ghost food delivery”
- Shanghai’s success: As the first city to implement electronic license verification, three major platforms (Taobao Flash Purchase, Meituan, and JD Food Delivery) have already had 159,000 businesses display their electronic licenses. New businesses registering are automatically screened for discrepancies. The goal is to cover all platforms and eliminate any fraudulent operations.
- Future improvements: Further efforts will focus on developing simpler and more efficient verification tools for handling issues like fake credentials, expired licenses, and irregular disclosures. A unified database of business information will be established, integrating regulatory requirements into systems to create a comprehensive approach that prevents, detects, and addresses fraud.
With these measures in place, customers can be assured that the businesses they order food from are legitimate and safe, eliminating the risk of consuming food from unlicensed or fraudulent establishments.