A Chinese consumer protection watchdog told Meituan and Pinduoduo to focus less on boosting traffic and more on protecting consumers, as part of an ongoing national campaign against market abuses by internet giants, reported Caixin.
Takeout titan Meituan and e-commerce upstart Pinduoduo were summoned by Shanghai Consumer Council (SCC) on Monday over consumer protection issues, the SCC said.
The authority said that Nasdaq-listed Pinduoduo has problems with product quality, forced cancellations of orders, post-sale customer services and fake discounts. The watchdog said in a separate statementit found that Hong Kong-listed Meituan had problems with refunds, delivery failures and misleading information on its platform.
The SCC said that internet platforms need to set aside the mindset of driving traffic and must meet their consumer protection responsibilities.