Core Viewpoint - The rapid development of live e-commerce in China has played a significant role in boosting consumption and promoting flexible employment, with new regulatory measures expected to further standardize the industry and enhance consumer confidence [1][6]. Industry Overview - The total number of live e-commerce related enterprises in China has approached 360,000 [3]. - The retail sales of live e-commerce are projected to reach 4.3 trillion yuan from January to November 2024 [3]. Consumer Experience Issues - The live e-commerce industry faces challenges such as poor shopping experiences due to a mix of qualified and unqualified operators, with many influencers and small businesses lacking operational, quality control, and after-sales experience [3]. - Reports indicate widespread issues including false advertising and fake reviews, with some live streams employing deceptive practices to mislead consumers [3][5]. Regulatory Developments - The State Administration for Market Regulation has drafted the "Live E-commerce Supervision Management Measures" to address existing issues, requiring operators to establish systems for product selection and error correction to ensure accurate product representation [6]. - Platforms are mandated to take action against violations, including warnings, limiting traffic, suspending broadcasts, and blacklisting severe offenders [6]. AI and Digital Influencers - The use of AI-generated digital influencers in live streams raises concerns, particularly regarding transparency, as many consumers are unaware they are interacting with AI rather than human hosts [5][8]. - The regulatory framework aims to include AI-generated content under supervision to prevent the spread of false information [6]. Future Outlook - As regulatory measures tighten, the industry is expected to undergo a reshuffle, with high-quality influencers and businesses likely to thrive while those relying on deceptive practices may be eliminated [8]. - The emphasis on building a transparent and fair trading environment is seen as essential for the maturity of the live e-commerce sector [8].