Shanghai Court Orders Livestream Host to Pay Triple Damages Over Fake Charity Stories

In 2021, a retired woman began shopping in a livestream, moved by a host's stories of helping children stay in school and get medical treatment. Over the next two years, she spent nearly 100,000 yuan – only to discover that the stories were made up.

Shanghai's No. 2 Intermediate People's Court has upheld a ruling requiring the host, the livestream operator and a jade seller to jointly pay her 19,800 yuan in punitive damages over two jade bangles. The seller must also refund the 6,600 yuan she paid for them.

The woman, surnamed Liu, came across the livestream in 2021, where a host performing under the name "Zheng" told emotional stories about helping left-behind children attend school and providing medical treatment for children from poor families.

Moved by the stories, Liu began buying products from the livestream to support the alleged charitable efforts. Over the following two years, she spent approximately 100,000 yuan (US$14,000) purchasing products promoted by the host across multiple platforms.

Liu later discovered social media videos exposing the use of fictional storylines to drive livestream sales. After the host failed to respond to her refund request, she filed a lawsuit over two jade bangles worth 6,600 yuan, seeking a refund and 19,800 yuan in punitive damages.

The court found that the host, surnamed Gao, had repeatedly used scripted performances and fabricated stories involving emergencies and assistance to vulnerable groups without disclosing that they were fictional.

The evidence showed that Liu had been misled by the stories and made purchases out of sympathy, the court said, ruling that the practice constituted consumer fraud and violated the principle of good faith.

It also found that Gao acted as an advertising endorser, while the livestream operator, surnamed Cao, was responsible for publishing the marketing content. Both knew that the advertisements were misleading.