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    Two Jailed for Listing Fake Restaurants on Food Delivery Apps

    Court decision comes days after new guideline for online meal services.

    A Shanghai court has imprisoned two men for forging official documents that allowed unauthorized catering businesses to register on food delivery apps, Sixth Tone’s sister publication The Paper reported Wednesday.

    The court’s judgement comes just a week after China’s Food and Drug Administration (CFDA) published new guidelines on Nov. 6 to strengthen the safety and supervision of online food delivery services. The rule, which will go into effect Jan. 1, stipulates that only brick-and-mortar restaurants are eligible to sell takeout through third-party online platforms. It also forbids restaurants from using contractors to prepare food for delivery.

    The two offenders, whose names were not released by the court, had reportedly manipulated registration documents for more than 20 restaurants between August and September last year. One man, identified as the regional manager of a food delivery platform, was sentenced to three and a half years in prison on Wednesday and ordered to pay a 5,000 yuan ($750) fine, while his accomplice was given a sentence of three years and three months plus a 3,000 yuan ($450) fine.

    But such practices are still prevalent, according to an investigative report published by The Beijing News on Thursday, which found that agents active on messaging apps will charge about 900 yuan to help restaurants register on popular food delivery platforms like Meituan and Ele.me, even if they don’t have physical storefronts. Ele.me told the news site that it is aware of the problem and has frozen transactions for businesses found to be illegitimate.

    The new food delivery regulations aim to address concerns with food safety — a sensitive topic in China, thanks to a series of widely publicized scandals, and a fertile subject for rumormongers. In April, the CFDA created a platform on its website to quash food-related rumors, warning people they could be punished for such actions. And starting in July, Shanghai introduced new regulations to get rid of hole-in-the-wall diners that authorities said violated food safety regulations. According to the new policy, it is up to provincial authorities to determine whether such small businesses are permitted to deliver via online platforms.

    Online food delivery is a multibillion-dollar business in China, with an estimated 256 million customers in 2016. But cutthroat market competition has also given rise to unhealthy business practices. Last year, Ele.me was named and shamed for partnering with unlicensed restaurants operating from homes during China Central Television’s annual World Consumer Rights Day show.

    Contributions: Lin Qiqing; editor: Qian Jinghua.

    (Header image: A food deliveryman carries packaged lunch orders in Nanchang, Jiangxi province, Sept. 27, 2012. VCG)