Chinese e-commerce platform Pinduoduo will start removing sellers of counterfeit products from its multibillion yuan subsidy programme, as its operator – Temu owner PDD Holdings – and major rivals make operational changes in response to Beijing’s “anti-involution” call.
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Pinduoduo on Monday updated its rules for merchants taking part in its subsidy programme, stating that the platform would take punitive measures, including permanent bans, on those selling “fake products” or other goods that fail to meet quality standards, according to a report by Chinese media Beijing Business Today.
The new rule is expected to take effect next Tuesday.
Pinduoduo did not immediately reply to a request for comment on Tuesday.
Pinduoduo rolled out its multibillion-yuan subsidy programme in mid-2019, a move that has helped the latecomer solidify its position in China’s small towns, where consumers tend to be more price-sensitive.