E-commerce Livestream Selling: Compliant Operation and Qualification Requirements Complete Guide

Livestream e-commerce has become an important sales channel, but regulation is increasingly strict. Multiple regulations have been issued since 2021, requiring comprehensive compliance in livestream selling.

1. Entity Qualification Requirements

Livestream room operators (merchants) must complete market entity registration (individual industrial and commercial household or enterprise) and tax registration per law. Livestream marketers (anchors) engaging in business activities in their personal name also require market entity registration. Platforms must conduct real-name authentication for livestream room operators and marketers. Selling special products (food, cosmetics, medical devices, health food, etc.) requires corresponding business licenses. MCN agencies need appropriate business scope.

2. Product Compliance Requirements

Products sold via livestream must comply with: qualified product quality (with quality inspection reports), standardized labeling (food labels, full cosmetic ingredient lists), special product qualifications (food business license, cosmetic filing/registration, medical device registration certificate), and no sale of prohibited goods (e.g., wildlife products, infringing goods). Products displayed in the livestream must match actual shipments; "product mismatch" is prohibited.

3. Advertising Compliance

Product introductions in livestreams constitute commercial advertising and must comply with the Advertising Law: no extreme words ("best," "No.1," "national-level"), no false advertising (exaggerated efficacy, fabricated sales, fake reviews), no disparaging competitors, medical/pharmaceutical/health food/medical device advertising requires review, and patents must be marked with patent numbers. Claims such as "lowest price on the entire network" or "limited-time flash sale" must be truthful; fictitious original prices and discounts are prohibited.

4. Consumer Rights and Tax Compliance

Consumer rights: 7-day no-reason return (except custom items), authenticity guarantee, after-sales response, no false shipping or fake orders. Livestream marketing platforms must establish consumer complaint handling mechanisms. Tax compliance: livestream selling income must be declared and taxed per law; anchor income is taxed as "remuneration for personal services" or "business income"; merchants pay VAT and CIT. Tax evasion through "yin-yang contracts" or "income splitting" faces recovery, fines, and criminal liability.