New regulations, which are expected to be announced in December, from the China Performance Industry Association will restrict “rewards” for livestreamers. Platforms that hold livestreams often provide opportunities for streamers to receive rewards or bonuses from users.
The regulations will address three current problems:
- Users’ impulse of handing out rewards – users often get carried away with emotion and give out numerous and large cash rewards without thinking it through. The regulations will require livestreaming platforms to set a cooling-off period for users before they give rewards.
- The size of reward – users often give out rewards of value as great as 1 billion RMB. Platforms will be expected to limit the maximum value of a single reward.
- Control minors’ spending – some young people use their parents’ money to pay for rewards. The regulations will discourage the distribution of rewards among minors through face recognition and other technology.
Read more about livestreaming in China:
- China’s livestreaming e-commerce sector to reach 1.05 trillion RMB in 2020
- Top livestreamer Li Jiaqi’s GMV set to reach 20bn RMB by end of 2020
- Suning launches world’s first offline livestreaming store