Regulation to Crack Down on "Ghost Takeout": Merchants Must Have Physical Stores, Violations Penalty Up to 200,000

Cracking down on “ghost takeout” with even stricter measures. On February 26, the State Administration for Market Regulation issued the “Regulations on Supervision and Management of Food Safety Responsibilities for Online Catering Service Operators” (hereinafter referred to as the “Regulations”). The focus is on platform responsibilities, merchant operation standards, and penalties for illegal violations to improve food safety in takeout services. Nandu N Video reporters found that compared to the previously released “Basic Requirements for Takeout Platform Service Management,” the Regulations clarify penalties for violations, significantly increasing the severity of punishments for platforms and merchants, with fines up to 200,000 yuan. The new rules will take effect on June 1, 2026.

Merchants must operate physical stores; violations can be fined up to 200,000 yuan

Sun Huichuan, Director of Food Safety at the State Administration for Market Regulation, mentioned at a February 26 food safety press conference that in recent years, online catering has developed rapidly, and “ordering takeout” has become a daily dining method for the public, especially young people. According to the China Catering Industry Annual Report, the size of China’s takeout market is expected to surpass 1.4 trillion yuan, with an annual growth rate of over 10%, accounting for about 24% of total catering revenue, becoming a key growth driver for the industry.

Regarding platform responsibilities, the Regulations specify management duties across the entire chain, including merchant qualification review, information disclosure, process control, and issue resolution. They require takeout platforms to be responsible from the moment of registration, online operation, to business activities, embedding food safety responsibilities into every aspect of platform operation. Sun Huichuan emphasized, “We want to warn takeout platforms that they cannot just collect commissions without responsibility; they cannot focus only on traffic without quality. Takeout platforms must genuinely assume the primary responsibility as gatekeepers of food safety.”

To standardize merchant operations, the Regulations clearly state that merchants must have real physical stores, with business items, addresses, and qualifications consistent; they must strictly control raw materials, maintain facilities, and follow operational standards, not processing food outside designated areas or outsourcing production; merchants not offering dine-in services must display specific signage. Sun Huichuan said that for takeout merchants, “not meeting face-to-face” does not mean “dishonest,” and “not going to the store” does not mean “no one is overseeing.” Food safety is a bottom line for merchants, and legality and compliance are their responsibilities.

Additionally, the Regulations require strengthening the “safety net” for penalties against violations. The State Administration for Market Regulation states that since takeout platforms are essentially e-commerce platforms, the Regulations align with the E-commerce Law, bringing takeout platforms under the unified regulatory framework for e-commerce operators, further strengthening legal responsibilities in information reporting, data sharing, and consumer rights protection. The penalties for violations are also significantly increased, with fines up to 200,000 yuan. If platform leaders intentionally violate laws, are malicious, or cause serious consequences, fines can be more than double or ten times their previous year’s income.

Cracking down on “ghost takeout,” reinforcing platform responsibilities as the “first gatekeeper”

According to the Regulations, the maximum fine of 200,000 yuan applies to the second paragraph of Article 22, which states that “online catering providers must submit genuine and valid business licenses to the platform; false or third-party licenses cannot be used.” In other words, using fake or third-party licenses to provide catering services is subject to penalties according to laws and regulations. If not specified, local market supervision authorities at or above the county level will order correction within a time limit, issue warnings, and impose fines ranging from 10,000 to 30,000 yuan; in severe cases, fines can be from 30,000 to 100,000 yuan; if harm results, fines can reach 200,000 yuan.

From the Regulations, combating “ghost takeout” remains a key focus. Yu Lu, Director of the Food and Catering Division of the State Administration for Market Regulation, explained that the Regulations require takeout platforms to conduct real-name registration for merchants and verify their food business licenses through on-site inspections and other methods, ensuring that the information on licenses matches actual conditions, rather than just formal review. Strengthening platform review of merchant qualifications emphasizes the platform’s role as the “first gatekeeper” in the network.

The Regulations also require platforms to verify the business license information of takeout merchants against data held by provincial market supervision departments. Mismatched data must prevent the platform from providing services. Breaking down data barriers between platforms and regulators, eliminating “information silos,” and enabling “source verification, two-way calibration, and real-time feedback” are crucial to prevent false or invalid licenses from entering the system.

Furthermore, platforms are required to update and verify merchant information, such as actual business addresses and qualifications, at least every six months. This is not just a routine check but a continuous “lifecycle management” process, where platforms actively re-verify and conduct spot checks during designated periods to ensure ongoing accuracy and legitimacy of merchant operations.