[Direct answer]When live-streaming sales go wrong, the merchant, as the seller, should bear the primary responsibility: if the product has quality problems, they are responsible for refunds, replacements, repairs, and compensation for losses; if the promotion constitutes fraud, they shall be compensated three times the price according to Article 55 of the Consumer Rights and Interests Protection Law of the People's Republic of China, or 500 yuan if the price is less than 500 yuan. If the live streamer recommends products in their own name, and false advertising causes damage, they shall bear joint and several liability with the merchant according to Article 56 of the Advertising Law of the People's Republic of China; if the platform fails to provide the merchant's true information or fails to fulfill its obligation to review the qualifications of products that may endanger consumers' lives and health, it shall bear corresponding responsibilities according to Article 38 of the E-commerce Law of the People's Republic of China. The degree of responsibility of the merchant is directly related to their compliance actions, and they can consult for more information.Legal services for corporate commercial and contract disputesThe team assesses the risks.

I. Problem background and typical scenarios

The "disaster" scenarios of live-stream e-commerce are numerous: ordinary food being promoted as having therapeutic effects; falsely inflating the original price to create the illusion of "the lowest price online"; materials, origins, and brands not matching the actual products; delayed delivery of pre-sale orders; post-sale evasions of responsibility; inconsistencies between the host's verbal promises and the product details page; and professional anti-counterfeiting organizations targeting live-stream rooms for collective claims. Many merchants believe that the responsibility lies with the hosts or MCN agencies, but in fact, under the legal framework, the seller's responsibility is the most direct and the most important, while the hosts' and platforms' responsibilities depend on their roles and faults.

II. Key points of contention

  • How are the responsibilities divided among the parties involved? The merchant is the seller, and the streamer may be identified as an advertising spokesperson or an advertiser. The MCN agency assumes responsibility based on its contractual relationship with the streamer and the merchant, while the platform bears the obligations of qualification review and safety assurance. The boundaries of each party's responsibilities often become a point of contention.
  • How to determine fraud: Whether false advertising is sufficient to mislead consumers into making purchasing decisions, whether the advertiser knowingly promoted the product despite its defects, how to determine price fraud (fabricating the original price, failing to fulfill price commitments), and whether to apply ordinary compensation or three-fold punitive compensation.
  • How to calculate the damages: Is it just a refund and return, or three times compensation? If the product defect causes personal injury, the victim can also claim for losses such as medical expenses and loss of income. For such rights protection, you can refer to the relevant provisions.Legal services for personal injury and medical disputesEvaluation.

III. Professional analysis by Henglue Lawyers

Whether the merchant is liable and to what extent depends on three key factors. First, whether the product and the promotional materials are consistent. If the product itself is qualified but the live streamer exaggerates the promotion, and the script is provided by the merchant or approved by them, the promotional consequences will be attributed to the merchant. If the script is the live streamer's own initiative, the merchant may still need to take responsibility first and then seek compensation from the live streamer and MCN according to the contract. Therefore, the cooperation agreement must specify the script provider, the reviewer, and the division of responsibilities. Second, whether there is intentional fraud. Knowingly making false claims about the product constitutes fraud, and a three-fold punitive damages will apply. In the food sector, the standards are higher. If the food does not meet food safety standards, the consumer can claim ten times the price, except for defects in labels or instructions that do not affect food safety and will not mislead consumers (Article 148 of the Food Safety Law of the People's Republic of China). Third, the platform's liability boundaries. If the platform fails to conduct qualification reviews of the registered merchants or fails to provide their real names, addresses, and valid contact information, consumers can directly claim compensation from the platform. After the platform makes compensation, it will seek reimbursement from the merchant. When the merchant defends against the lawsuit, they should organize evidence around the source of the promotional copy, the review records, and the product inspection reports. They should distinguish their own responsibilities from the live streamer's faults to avoid taking full responsibility without considering the circumstances.

IV. Practical suggestions and legal basis

At the legal basis level: Article 44 of the Consumer Rights and Interests Protection Law of the People's Republic of China (amended in 2013) stipulates the responsibilities of online trading platforms - if the platform fails to provide the seller's real name, address, and valid contact information, consumers can request compensation from the platform, and the platform shall fulfill any more favorable commitments it has made; Article 55 stipulates punitive damages of three times the amount of the fraudulent act and a minimum amount of 500 yuan. Article 38 of the E-commerce Law of the People's Republic of China (effective January 1, 2019) stipulates that if the platform knows or should know that the merchant infringes the legitimate rights and interests of consumers but fails to take necessary measures, it shall bear joint and several liability. If the platform fails to fulfill its review obligations for goods related to consumers' lives and health, it shall bear corresponding responsibilities according to law. Article 56 of the Advertising Law of the People's Republic of China stipulates that if false advertisements for goods or services related to consumers' lives and health cause damage, the advertising endorsers and other parties shall bear joint and several liabilities with the advertisers. The "Measures for the Management of Online Live Marketing" also require live marketing entities not to make false or misleading commercial promotions.

At the practical advice level: select products and keep samples, and request inspection reports; do not broadcast products with incomplete qualifications; formalize sales pitches into written scripts, and establish a blacklist of prohibited words such as "best", "first", and "cure", and review them one by one; record the entire live broadcast process for future reference; sign written agreements with streamers and MCNs on compliance obligations for promotions, breach of contract compensation and recovery mechanisms; establish rapid after-sales and advance compensation mechanisms to resolve concentrated complaints before litigation; when encountering professional claims, first check the qualifications and labels of the products to distinguish between genuine defects and malicious claims before formulating strategies. For the compliance design of commercial contracts such as live-stream cooperation, further consultation is recommended.Special services and legal services for other cases.

5. Henglu Law Firm's Reminder

The essence of live-streaming sales is still about selling goods. The more intense the promotion, the greater the responsibility. Instead of defending themselves afterwards, merchants should focus on ensuring the authenticity of their qualifications, sales pitches, product samples, and after-sales services beforehand. They should also remain vigilant against the live streamers' verbal promises - any promises that have not been confirmed in writing by the merchants may ultimately be borne by the merchants themselves. In the event of concentrated complaints or claims, merchants should immediately fix the live stream recordings, orders, and after-sales records, assess whether they constitute fraud, and then decide on the pace of settlement or litigation. Relevant compliance reviews and dispute responses can be handled throughBeijing Henglu Law FirmMake an appointment for an evaluation.

Q1: If I buy a fake product in the live-streaming room, who can I ask for compensation from?

First, find the sales merchant, who shall bear the primary liability such as refunding the purchase price and compensating three times the amount. If the live streamer recommends the product knowing it is a fake, he/she shall bear joint and several liability with the merchant. If the platform fails to provide the merchant's real name, address, and valid contact information, consumers may directly claim compensation from the platform, and the platform shall recover the compensation from the merchant after payment. Consumers should keep the order, live stream recordings, chat records, and product inspection evidence. If it constitutes fraud, they may claim three times the compensation, and if the amount is less than 500 yuan, it shall be calculated at 500 yuan.

Q2: Are streamers considered advertising endorsers? What responsibilities do they need to fulfill?

If the streamer recommends or endorses products in their own name or image, they constitute an advertising spokesperson or advertiser. According to Article 56 of the Advertising Law of the People's Republic of China, if false advertisements for goods or services that affect consumers' lives and health cause damage, the spokesperson and the advertiser shall bear joint and several liability; for false advertisements of other goods, if they know or should have known that the advertisements are false but still endorse or recommend them, they shall also bear joint and several liability. For pure sales streamers who only display links and do not provide recommendation proofs, they are more likely to be treated as sales assistants, and the boundaries of their responsibilities will be determined based on their specific actions.

Q3: What should merchants do if they are subject to concentrated claims by professional anti-counterfeiting activists?

First, clarify the basis for the claim: for those with genuine quality defects, rectify and compensate in accordance with the law to avoid the situation from escalating; for those with only labeling defects that do not affect food safety or mislead consumers, food-related cases can rely on the proviso defense in Article 148 of the Food Safety Law of the People's Republic of China, and a ten-fold compensation will not apply; for those who obviously seek to profit from malicious large-scale claims, they can respond to the lawsuit normally and provide evidence of the other party's past batch-based claims records. The fundamental solution is to ensure that all qualifications are in place, labels are compliant, and promotional activities are traceable, so that there will be no room for claims to succeed.

Q4: If a live stream claims to offer the "lowest price online", but the actual price turns out to be higher, does this constitute fraud?

This may constitute a violation of price laws. If a seller falsely claims a high original price and promises a minimum price but fails to deliver, it could mislead consumers into making purchasing decisions, which may be regarded as fraud and subject to three-fold compensation. Market supervision departments can also investigate and deal with such cases. Even if it doesn't constitute fraud, the seller's failure to fulfill the price commitment also constitutes a breach of contract, and consumers can claim compensation for price differences and other losses. Key evidence includes live stream recordings, price snapshots of the product page, and transaction records. It's safest to take screenshots of the product page and transaction records simultaneously when placing an order to preserve the evidence.

Q5: How can merchants divide responsibilities with streamers and MCNs in the contract?

The cooperation agreement should clarify: who provides and reviews the script for sales pitches; the promotional content shall be subject to the written confirmation draft; the streamers are not allowed to make over-range promises, and how to share the liability for compensation in case of violations; the setting of compliance deposit and penalty clauses; and the path of recourse and cooperation obligations after the merchant makes compensation first in case of disputes. It should be noted that the contract only addresses internal recourse, and the external liability may still be shared jointly. Therefore, in addition to contract design, daily review and record-keeping are also indispensable.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, so as to avoid missing the statutory time limit. →Business and commercial legal services·Beijing Henglu Law Firm