The Chinese crowdfunding platform Shuidichou has banned its offline promoters from advertising its services, according to an official notice Saturday.

The company’s statement came hours after domestic media outlet Pear Video released an undercover report exposing the company’s allegedly lax vetting standards. The video report showed the offline promoters visiting hospitals in several Chinese provinces and urging patients to start their own fundraising campaigns on Shuidichou. Some encouraged patients to set fundraising targets above what they would need to cover their medical expenses. In the video, one promoter is heard telling a patient’s family that Shuidichou doesn’t check how the funds are be used, even though the company’s policy requires such disclosures.

The offline promoters typically pocket an extra 100 yuan ($14) for each new campaign they register, as well as an additional 500 yuan for every 25 new sign-ups, according to an official job description. In Saturday’s statement, Shuidichou vowed to “strictly punish” promoters who violated company policy and promised to strengthen its vetting practices to prevent the misuse of publicly donated funds.

Since its launch in 2016, Shuidichou has landed in hot water multiple times after people were caught exploiting the platform without the company’s knowledge. Last month, a Beijing court ordered a man to return all of the donations he received through Shuidichou after he was discovered to be using them for purposes he had not declared. In May, Shuidichou had promised to improve its vetting practices after a successful Chinese comedian launched a crowdfunding campaign that garnered largely unsympathetic responses on social media and raised questions about whether well-off individuals should be allowed to fundraise on the site. (Image: IC)