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Last year, a department store sales company in Xuzhou, Jiangsu province, engaged the services of an MCN (Multi-Channel Network) company, which boasted influencers with followers ranging from one to five million. The agreement between the two parties included five live-streaming sessions, with a guaranteed sales target of 420,000 yuan.
According to the contract, the department store company paid a service fee of 25,000 yuan upfront, and both parties would share the total sales revenue. However, after three live-streaming sessions, the sales results were a shocking zero for each session.
The department store company began to question the MCN company's ability to fulfill the contract and doubted the authenticity of the influencers' follower counts. Subsequently, the company took legal action against the MCN firm. The court's investigation revealed that the influencers' follower numbers were likely falsified based on backend data, leading to the final judgment that the MCN company must refund the service fee.
The court's decision and the circumstances surrounding the case sparked a flurry of reactions online. Many netizens expressed their skepticism about the entire influencer marketing industry.
One user commented, "This just goes to show that follower count doesn’t always translate to actual influence. Companies need to do better due diligence before investing in these so-called influencers."
Another netizen wrote, "I've always suspected that many influencers buy fake followers. This case is a clear example of how deceptive this industry can be."
A more cynical user remarked, "It’s not just about the follower count, but engagement. Even if the followers were real, it’s possible that they are not interested in buying anything."
Some comments highlighted the need for more stringent regulations in the influencer marketing sector. "There should be stricter rules and verification processes to ensure transparency and protect businesses from such scams," one user suggested.
On the other hand, some users empathized with the department store company. "It's unfortunate for the company, but hopefully, this serves as a wake-up call for them and others to be more cautious."
The case also raised discussions about the pressure on influencers to meet unrealistic expectations set by their agencies. "MCN companies often promise the moon to secure contracts, but when their influencers can't deliver, it’s the companies and influencers who suffer the fallout," observed a user.
