SAMR expands digital business licenses to fight 'ghost' food delivery outlets

China's market regulator is expanding the use of digital business licenses on food delivery platforms to stop unlicensed or fraudulently registered restaurants from selling meals online, the State Administration for Market Regulation said on Friday.

The SAMR said it was promoting electronic license verification across the online food delivery sector to prevent merchants with regulatory or food safety problems from gaining access to major platforms.

Under the system, regulators connect their databases directly with food delivery platforms and transmit verified electronic credentials to them. The licenses can then be displayed on the platforms for consumers to inspect.

The move is aimed at eliminating so-called "ghost" food delivery outlets, a term used in China for merchants that operate with false, borrowed, or invalid credentials, or whose actual kitchens do not match the information displayed on delivery apps.