China’s State Administration for Market Regulation (SAMR) has exposed a large-scale food fraud in which a livestream seller disguised cheap soybean oil as premium walnut oil, using a fake “public-interest farming assistance” narrative that generated more than 64,000 orders and 3.1 million yuan (about US$436,000) in sales over six months, according to a CCTV investigation published September 27, 2026.
The scheme came to light during SAMR spot checks of livestream e-commerce food products and was aired on the national broadcaster’s Weekly Quality Report program.
‘Charity’ Pitch Drew 64,000 Orders
The storefront, operating as “People’s Supply and Marketing Cooperative Guangping Supply and Marketing Cooperative Selection,” promoted a five-jin (2.5 kg) bottle of “Yikoufu” brand walnut oil with a claimed retail price of 298 yuan. In livestream broadcasts, hosts told viewers the oil was being offered at a flash-sale price of just 39.99 yuan as part of a charitable drive to support farmers and rural welfare causes.
The sympathy-driven marketing worked. Between January and September 2026, investigators said the store moved 64,107 units, with total sales reaching 3.1 million yuan.
Lab Test Exposed the Soybean Oil Fraud
Inspectors sent samples for laboratory analysis and found the oil’s palmitic acid content measured 10.8 percent—above the national reference range of 2.2 to 10.0 percent for genuine walnut oil. Food safety experts said that any reading above 10 percent almost certainly indicates the oil was blended with cheaper vegetable oils such as soybean or corn oil.
The pricing was equally revealing. Authentic walnut oil costs approximately 50 to 60 yuan per jin to produce, meaning the “bargain” price of 39.99 yuan for five jin did not even cover the raw ingredients.
Crude Workshop in a Rural House
Investigators traced the operation to a remote, dilapidated house in Xinghua, Jiangsu Province, where sanitary conditions were described as poor. The site held no food production license, and every detail on the packaging—including the manufacturer’s name, address, and license number—was fabricated.
Footage from the raid showed workers pumping soybean oil from more than 20 large barrels into storage tanks before bottling it as “walnut oil” and “perilla seed oil.” At the scene, authorities confiscated 2,660 liters of soybean oil, 5,128 empty plastic bottles, and over 10,000 counterfeit labels.
Profits, Penalties, and Public Safety
The alleged mastermind, identified only by the surname Sun, is accused of running the family-based operation without permits since January 2026. With raw soybean oil costing as little as 7 to 8 yuan per barrel, the profit margins were enormous—built entirely on consumer trust.
The case highlights a worrying trend of food fraud in livestream commerce, a sector that has expanded rapidly in China. Regulators have pledged stricter random inspections and tougher penalties for those who exploit consumers’ goodwill. Under China’s food safety law, producing or selling falsely labeled food can result in heavy fines, business license revocation, and criminal prosecution.
Practical Tips for Consumers
- Purchase edible oil only from licensed retailers or authorized online flagship stores.
- Check the blue SC production license number printed on the label.
- Be skeptical of “charity,” “farmer assistance,” or “public welfare” promotions with unusually low prices.
- Report suspicious food products to the SAMR hotline at 12315.
As livestream shopping continues to dominate China’s retail landscape, this case serves as a reminder that generosity can be weaponized—and that due diligence remains the consumer’s first line of defense.