Green-screen fakery and AI-generated scenes used in Chinese livestream e-commerce
Chinese livestream e-commerce sellers reportedly use green-screen compositing and AI-generated imagery to create fake factory and farm scenes, falsely claiming products are from direct sources to deceive consumers. The deceptive practices are inexpensive to produce and have become widespread across multiple product categories on major platforms.
What happened
Livestream e-commerce sellers on platforms including WeChat Video Number and Taobao reportedly use green-screen keying and AI synthesis to create fake production scenes including orchards, factories, warehouses, and farms, while falsely claiming products are sold directly from their source.
A consumer in Jinan named Shi Tong purchased canned goods from a livestream called "罐头源头工厂批发" (Canned Food Source Factory Wholesale) that showed workers packing items in a factory setting, but discovered the actual production address differed from the claimed location and was blocked by the host when requesting to see other factory areas.
A strawberry seller on an unnamed platform showed a host standing in front of a strawberry greenhouse with visible compositing artifacts: "the host's body edges had a green glow, fruit boundaries were blurry, clearly showing keying marks." When buyers asked to see current picking activities in the field, the host avoided the question. Customer reviews reported receiving rotten strawberries and discovering the shipment location differed from the broadcast location.
Reported impact
The deceptive practices harm consumers' right to know the true sourcing and production conditions of products, as they are misled about product quality and origin.
The fraudulent use of fake scenes to simulate direct-source sales undermines fair competition by giving deceptive sellers market advantages over compliant sellers, creating a "bad money drives out good money" dynamic.
Index analysis
Green-screen compositing and AI-generated video synthesis required only a smartphone, a green screen, lighting, and built-in compositing software in livestream applications, making it cheap and accessible.
Video material packages sold on Taobao for 3.7 yuan include over 10,000 pre-made background videos for green-screen replacement, with individual packages selling over 1,000 copies. These include materials labeled "shoe factory production line," "food factory production line clearance," and "large supermarket promotion site." Service providers also offer livestream set design using props like warehouse shelving and conveyor lines, from 8 to nearly 100 square meters.
Governance controls
The "直播电商监督管理办法" (Livestream E-Commerce Supervision and Management Measures) took effect on 1 February 2026, requiring livestream e-commerce platform operators to take effective measures to prevent and address the use of AI and other technological means to fabricate or spread false or misleading commercial information, and requiring livestream operators to ensure account names, avatars, descriptions, titles, covers, backgrounds, and props comply with law and do not contain content that deceives or misleads consumers.
Experts recommend that platforms establish mandatory labeling for virtual scenes and AI-generated content, with prominent and persistent notices on livestreams using green-screen, composited images, or virtual backgrounds. Platforms should use technical means to monitor livestream images and detect excessive use of green-screen keying or synthesized video backgrounds used for selling, and promptly limit traffic, suspend broadcasts, or remove repeat offenders.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.