China's Yousiyi Health Supplement Scandal: Top Livestreamers Offer Full Refunds as Company Faces Collapse

A massive consumer fraud scandal surrounding Australian-branded health supplement "Yousiyi" (优思益) has sent shockwaves through China's livestreaming e-commerce industry after state broadcaster CCTV exposed the brand's fabricated overseas origins and fraudulent manufacturing claims.

What CCTV Exposed

On April 1, CCTV reported that "Australian Yousiyi" — China's top-selling lutein brand on Douyin and Tmall — had:

• Faked its Australian origins — claimed to be manufactured in Melbourne
• Fabricated its factory — the "Melbourne factory" was actually an auto repair shop
• Produced domestically — products were actually manufactured by Chinese contract factories
• Inflated brand credentials — hired marketing firm to secure endorsements from overseas professors

Marketing Firm Connection

Hangzhou Suoxiang Marketing Planning Co. Ltd. managed the brand's marketing. Yousiyi claimed Suoxiang:

• Leaked commercial data without authorization
• Used company cases for self-promotion
• Provided designs containing plagiarized elements
• Exaggerated facts in marketing materials

Yousiyi has filed a lawsuit against Suoxiang and sent a formal legal letter.

Company Status

In a public statement, Yousiyi said it is "at the edge of collapse":

• Multiple accounts have been suspended
• Company operating in an "abnormal state"
• Unable to provide after-sales or customer complaint services
• Cooperating fully with investigations by multiple government agencies

Livestreamer Fallout

Major livestreaming personalities who promoted Yousiyi products have rushed to distance themselves:

• 与辉同行 (Yu Hui Tong Xing) — offered full refunds to all consumers who purchased through their channel, stating they would "advance the payment" before official investigation results
• 陈妍希工作室 (Michelle Chen Studio) — issued public apologies
• Multiple other top streamers have followed suit

Industry Impact

The scandal highlights systemic issues in China's livestreaming e-commerce:

• Insufficient due diligence on product origins and certifications
• Revenue-driven promotion without proper quality verification
• Regulatory gaps in influencer advertising accountability
• Consumer vulnerability to premium-priced health products with fabricated branding

The Zhihu discussion has garnered over 3.6 million views, with many commenters calling for stricter influencer advertising regulations.