How one disappointing order uncovered a massive ‘ghost cake' delivery scandal in China [CNN]
Alibaba Group Holding Limited American Depositary Shares each representing eight Ordinary share (BABA)
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Source: CNN
A customer's complaint about a disappointing cake kicked off a massive investigation that uncovered thousands of “ghost” food vendors in China, resulting in staggering fines for some the country's largest firms and highlighting the pitfalls of the cutthroat price competition. The inquiry –– marked by scuffles between investigators and delivery service employees, a feigned medical emergency and hastily scribbled notes to “stay silent” –– began last summer when a man in Beijing, identified as Liu, received a birthday cake decorated with an inedible flower, according to multiple state media accounts. Liu ordered the cake through an online delivery platform and, unsatisfied with his purchase, reported the vendor to local authorities. What regulators found was a bogus cak?ery chain, boasting nearly 400 locations, operating with forged food business licenses and no physical storefronts to be found. The incident triggered a full-scale nationwide probe and uncovered a shadow food sup
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