BEIJING (Reuters) - Chinese regulator fined Kuaigou, an e-commerce unit of live-streaming service provider Kuaishou Technology, 26.7 million yuan ($3.84 million) over what it described as several "illegal acts."
Kuaigou charged "unreasonable" fees, failed to protect consumers or take action on counterfeit products being sold on its platform, and facilitated false or misleading marketing practices, according to a statement China's market regulator released on Friday.
The fine followed a probe the State Administration for Market Regulation launched into the company in September, citing "illegal and irregular occurrences such as false marketing and counterfeit products" in the live-streaming e-commerce industry.
The company also published "illegal advertising," failed to disclose required information and provided services "for the illegal sale or purchase of wild animals and their products or prohibited hunting tools," the regulator said.
In a statement released later on Friday, Kuaigou said it "sincerely accept(s) and will resolutely obey" regulator's decision and penalty.
"We will strengthen operations in accordance with the law, further improve compliance level ... and work together with the businesses on the platform to provide better services to consumers," the company said.