China Cracks Down on AI Deepfakes in E-Commerce to Combat Fraud and Protect Consumers

  • By IndiaStartupBuzz     |    November 18, 2025

Chinese cyberspace authorities have launched a sweeping crackdown on the use of AI-generated deepfake technology in e-commerce livestreams and short videos. The crackdown follows growing concerns over fraud, brand reputation harm, and consumer deception linked to unauthorized AI impersonations of celebrities and public figures in online promotional content.

The Cyberspace Administration of China (CAC) reported removing over 8,700 pieces of non-compliant content and taking action against more than 11,000 accounts that employed AI deepfakes to mimic celebrities and popular influencers without consent. Such accounts were found to promote substandard or counterfeit products, misleading consumers and violating civil rights.

Notable cases included multiple AI-generated clones of actress Wen Zhengrong appearing simultaneously to endorse different products across live streams, and forgeries of TV host Li Zimeng and Olympic champions promoting fake or inferior goods. These activities infringe on individuals’ portrait rights and consumers’ right to accurate information.

Despite the introduction of “Artificial Intelligence Generated Content Labeling Measures” in September 2025 mandating clear disclosure of AI-generated content, enforcement challenges remain as malicious actors employ sophisticated countermeasures such as generating new fake identities to evade bans.

The regulator vowed a “high-pressure” stance to hold online platforms accountable and continue exposing malicious marketing accounts to safeguard a positive digital commerce environment. This includes improving AI-driven detection technologies, implementing faster content takedowns, and enforcing stronger penalties for violators.

Legal experts advocate a multi-pronged approach emphasizing technology innovation, regulatory oversight, and accountability frameworks. They caution platforms and marketers to maintain stringent compliance protocols, transparency in AI content, and rapid response mechanisms to emerging deepfake threats.

The crackdown reflects China’s broader efforts to develop robust AI governance structures balancing innovation with consumer protection and public trust. As AI technologies rapidly evolve, China aims to set global standards for transparent, ethical, and safe deployment of generative AI in the commercial sphere.

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