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New Regulations for Online Ordering Has Been Released For One Month, “Ghost Restaurant” And Other Problems Are Still Prominent

2016-11-02

Since this year on, many cities has carried out inspections and special rectification on the online ordering platforms. The “Measures for Investigating and Handling Online Food Safety Violations” issued on October 1st, corresponds to the new food safety law and has strict regulations on the legal responsibility and obligation of all partners in the online food trading.

However, after surveying in Beijing, Shanghai and Guangzhou, the reporter finds that some sellers make the fraud by blurring the license words, the “ghost restaurant” and out-scope operation still exist.

Various Kinds of Fraud License Under the New Rules

After logging on to the major online ordering platforms and field inspections, the reporter finds that some seller escape the supervision of new rules through various kinds of fraud on the license.

Replacing the license picture with store picture. On the platform, several stores, such as the “Nanjing Dumpling Store Hotpot” which locates at No.641, West Jianguo Road, Xuhui district, Shanghai; “Manxiangyuan Restaurant” that locates near Xuanwumen, Xicheng District, Beijing; “Store of the Year” that locates at No.30-3, Changchun Street, “Shishangke” that locates at No.6, Dazhiqiao lane, don’t show the business license in business details, but just attach several pictures of the store.

Blinding consumers with fuzzy license. On the platform, some restaurants from Beijing, Shanghai and Guangzhou that has showed the license and store pictures could only be seen with low resolution photos, which can’t be enlarged by clicking.

The reporter also finds a store named “Mr. Big Beard”, of which the showed individual industrial and commercial business license and food business license can’t be seen clearly, nor can they be enlarged by clicking. The registered address of this store is No.10, 3rd Shunhe lane, Xicheng District, Beijing. However, there is no restaurant at this location after a field investigation. According to the user's comment information and pictures, the reporter finds that its actual operation position is a restaurant named “Wushan Roast Fish”, which is near the 12th yard, New Culture Street, Xicheng District, Beijing.

Continuing to operation even the license has exceeded the time limit. The reporter finds that the catering service license of a store named “Spice and Hot Temptation(Hanguang Store)” has already exceeded the time limit in June.

Experts point out that operation with an overdue license equals to operation without a license.

“Ghost Restaurant” is still prominent

The reporter finds that some online ordering problems that have been investigated and treated still exist.

The “Ghost Restaurant” of which the showed address doesn’t conform to the actual business location is often seen. For example, a store called “Fenziyuan” shows its location at No.1, Daliushu Road, Haidian District, Beijing. But after the reporter’s field investigation, there is actual a store here, but it has neither brand nor the license. After checking the comments on this store, the reporter finds that several customers have complained that its takeaway is abnormal and they suffer from diarrhea. The reporter also finds that some sellers play the cat-and -mouse, every time the media reports, the online ordering platforms remove the stores that have no license, but after a short period, similar problems reappear, going round and round.

Officials of Beijing Food and Drug Administration Department express that Beijing has 58 thousand stores on the major four online ordering platforms. Compared to actual restaurants, online ordering trading is complex with long transaction chain, which may provide more opportunities for criminals to make a fraud. It also brings greater difficulty for the supervision of the functional departments. Moreover, the randomness of catering industry brings huge regulatory challenges.

Experts believe that source of chaos lies in the online ordering platform

Although the investigation and treatment approach requires online catering operators to show the license, some seller blur the license deliberately, and the online ordering platforms even sets the function of unable to enlarge, which makes the publicity to be a furnishings.

The reporter finds in the investigation that online ordering platforms actually have the governance capability towards the sellers, and it’s also achievable on technology. But the operation is always slow and some online ordering platforms even form an “inverse competition”, namely platform A has just removed the store, but platform B accepts it immediately.

Experts believe that the black workshops on the online ordering platforms are rampant even under the serious regulations of relevant administrative department, one of the main reasons is that the online ordering platforms are not punished.

“Black workshops can be involved in the online ordering platforms, the source lies in offline while the origin lies in the platforms”, research fellow Fu Weigang from Shanghai Institute of Finance and Law believe that the unlicensed sellers are not new born, but the appearance of online ordering platforms enlarges the quantity of unlicensed sellers. Reasons for the chaos of online ordering lie in careless supervision of platforms that pursue for scale, as well as insufficient investment of the platforms, management is limited. Moreover, some local sellers act evilly in collusion with the platform management.

Supervision for the online ordering platforms should control the examination, so as to eliminate the black workshops from the source. This work needs the cooperation of Food and Drug Administration department, network information department and ministry of industry and information. It more lies on the online ordering platforms and offline catering companies to loyally implement the legal obligations of food safety subject liability.

 

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