China’s market regulator is moving to tighten controls on the online food delivery industry, aiming to improve transparency and reduce malpractices, according to a report on China Daily.
The State Administration for Market Regulation (SAMR) has issued new rules, effective 1 June, covering restaurants and other food providers using delivery platforms.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Under the new rules, food businesses on delivery platforms must use the same name online as it appears on their physical shopfronts.
They will also need to keep core information clearly visible on their main webpage at all times, including their business licence, photos of their actual premises and their operating address.
The address shown online must match the location registered on the operator’s food service permit.
Additionally, merchants are required to follow existing rules on sourcing ingredients, maintaining facilities and implementing standard food preparation procedures.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe regulation bans food processing outside approved preparation areas and forbids outsourcing production to third parties.
These steps are intended to close loopholes that have allowed some vendors to operate informally or outside routine regulatory checks.
The rules also introduce compulsory labelling for operators known as “ghost kitchens”, which run delivery-only services with no on-site dining.
Such businesses must display a clear “no dine-in” label on their main online page.
SAMR food safety director Sun Huichuan said consumer confidence depends on ensuring that “what you order is what you get.”
Huichuan was quoted by China Daily as saying: “To that end, the country sets out explicit information disclosure obligations for both platform operators and online catering service providers across three core dimensions: business identity, operating model and food processing procedures.”
Earlier this year, China’s antitrust regulator launched a formal investigation into the intensifying rivalry among food delivery services.
Subsequently, several restaurant and beverage operators have reportedly raised prices and cut back subsidies on delivery platforms.
