Core Viewpoint - The article highlights the deceptive practices in live-streaming pearl auctions, where the process of opening oysters to reveal pearls is manipulated to create an illusion of authenticity and excitement, ultimately misleading consumers [4][24][29]. Group 1: Live Streaming Pearl Auctions - The live-streaming auction model for pearls has gained popularity, particularly in Zhuji, which accounts for 80% of China's freshwater pearl sales and 70% globally [5][10]. - Consumers are drawn to the excitement of bidding on oysters, with some live streams attracting thousands of viewers, creating a competitive atmosphere [5][10]. - The auction process often involves artificially inflated prices, where the final bid can be significantly higher than the initial starting price due to orchestrated bidding strategies [12][16]. Group 2: Deceptive Practices - Investigations revealed that some live-streamers use pre-prepared pearls hidden in the oysters, creating a false impression of a genuine "live" opening [25][29]. - The practice of "guessing the pearl size" is employed to engage viewers and encourage bidding, further manipulating consumer behavior [18][24]. - Regulatory authorities have identified these practices as misleading and in violation of competition laws, leading to increased scrutiny and enforcement actions against such live-streaming businesses [29][32]. Group 3: Regulatory Response - Since 2019, over 70 live-streaming shops have been penalized for similar deceptive practices in Zhuji, indicating a growing concern over consumer protection in this sector [32]. - Regulatory bodies are implementing stricter guidelines to ensure transparency in live-streaming, including requiring full visibility of the auction process [34]. - The market supervision department is actively educating consumers about common fraudulent practices in the pearl industry to help them make informed purchasing decisions [36][38].

Core Viewpoint - A recent case revealed that an online seller fabricated transaction volumes to create a false impression of product popularity, highlighting the need for stricter regulation in e-commerce to protect consumer rights [1][3][5]. Group 1: Case Details - The seller claimed over 105,000 transactions for a lapel microphone, while actual sales were found to be less than 1,000 [3]. - The seller exploited a loophole by splitting a main product into accessory links, setting a low price to encourage bulk purchases, resulting in 104,764 inflated transactions through repeated fake orders [3][4]. Group 2: Regulatory Framework - The case falls under the provisions of the E-commerce Law and the Interim Regulations on Anti-Unfair Competition, which prohibit false transactions and misleading commercial practices [4][5]. - The successful investigation marked the first case handled by the Haidian District Market Supervision Bureau under the new regulations, demonstrating a commitment to purifying the digital economy and safeguarding consumer rights [5][6]. Group 3: Market Context - As of December 2024, China's online shopping user base is expected to exceed 900 million, making sales data a critical factor for consumer purchasing decisions [5]. - The rise of e-commerce has led to increased scrutiny of sales practices, with the implementation of new regulations aimed at curbing unfair competition in the digital marketplace [5].