Zhang Kaiyang, one half of the prominent Chinese influencer duo known as the "Crazy Older Brother Yang," has recently drawn significant public attention following the brief promotion of an expensive e-commerce training course, despite the fact that both he and his twin brother, Zhang Qingyan ("Crazy Younger Brother Yang"), remain under a suspension from live-streaming activities imposed nearly two years ago. This latest venture has reignited public debate regarding accountability within China’s booming but increasingly regulated influencer economy, particularly after the brothers’ company faced a substantial fine for false advertising.
The Ascent of the "Crazy Brothers" and Three Sheep Network
The twin brothers, Zhang Qingyan and Zhang Kaiyang, emerged as household names on Douyin, the Chinese counterpart to TikTok, beginning in 2018. Their meteoric rise was fueled by a distinctive brand of humor, centered around relatable and often exaggerated interactions within their family unit. Their short, engaging videos quickly captivated a massive audience, transforming them from ordinary individuals into prominent digital personalities. Their content, characterized by its comedic portrayal of sibling dynamics and familial life, resonated deeply with millions of users across China, accumulating a vast and dedicated following.
Capitalizing on their immense popularity and understanding the burgeoning potential of the influencer market, the brothers, alongside a partner, established Three Sheep Network (三只羊网络) three years later. This agency quickly grew into a significant entity within the digital ecosystem, managing a roster of hundreds of social media personalities and live-streamers. The company’s business model leveraged the brothers’ initial success, extending their influence and expertise to cultivate new talent and monetize digital content across various platforms. Three Sheep Network became a testament to the power of influencer-driven commerce, facilitating brand partnerships, product endorsements, and direct sales through live-streaming, a sector that was experiencing exponential growth in China. The strategic establishment of their agency allowed them to scale their operations beyond individual content creation, positioning them as key players in the wider influencer industry.
The Mooncake Scandal: A Test of Integrity (September 2024)
The impressive trajectory of Three Sheep Network encountered a significant impediment in September 2024, when the company found itself at the epicenter of a major scandal involving false advertising. The incident revolved around the promotion and sale of mooncakes, a traditional delicacy deeply embedded in Chinese culture and primarily consumed during the Mid-Autumn Festival. Zhang Qingyan, the "Crazy Younger Brother Yang," took the lead in promoting what he presented as "Hong Kong Meisun Mooncakes." During his promotional efforts, he made specific claims, asserting that the mooncakes originated from an "over two-decade-old high-end brand" and were manufactured in Hong Kong. These assertions were likely intended to imbue the product with a sense of quality, heritage, and prestige, leveraging Hong Kong’s reputation for premium goods.
However, these claims quickly unraveled following an investigation launched by regulatory authorities. The probe reportedly uncovered significant discrepancies between the advertised information and the actual facts. It was revealed that the mooncakes were not, in fact, produced in Hong Kong, nor did they emanate from a long-established "high-end brand" with a two-decade history in the special administrative region. Instead, investigators reportedly traced the production back to Guangdong province in southern China, and further found no evidence that the mooncakes had ever been sold in Hong Kong. This revelation ignited a fierce backlash from consumers and the public, who felt misled by the influencers they had trusted. The misrepresentation was particularly egregious given the cultural significance of the Mid-Autumn Festival, where quality and authenticity of traditional foods like mooncakes are highly valued.
In response to the mounting public pressure and regulatory findings, Three Sheep Network issued a public apology via its official Douyin account. The company acknowledged its failings, admitting to "falsely advertising and misleading consumers." In a bid to mitigate the damage and restore public trust, the apology included a pledge to "conduct thorough rectifications within the company," signaling a commitment to internal reforms and stricter adherence to advertising standards. The consequences of the scandal were severe and far-reaching. The government imposed a hefty fine of nearly 70 million yuan, equivalent to approximately $10.3 million, underscoring the seriousness of the violation and the authorities’ resolve to enforce consumer protection laws. Furthermore, a crucial punitive measure was enacted: all social media accounts associated with the twin brothers were suspended from live-streaming, effectively halting their primary revenue stream and direct engagement channel with their audience. While other content creators signed under Three Sheep Network were permitted to continue their operations, the founders themselves were sidelined from the lucrative live-streaming arena, marking a significant setback in their careers.
China’s Stringent Regulatory Environment for Live-streaming and E-commerce
The mooncake scandal and the subsequent penalties are emblematic of China’s increasingly stringent regulatory landscape governing the live-streaming and e-commerce sectors. Over the past few years, as the digital economy has boomed, Chinese authorities have intensified efforts to curb misconduct, protect consumer rights, and maintain market order. The scale of China’s live-streaming market is immense; projections indicate that it could reach over 4.9 trillion yuan (approximately $750 billion) by 2025, driven by hundreds of millions of users. This rapid expansion has, however, brought with it challenges such as false advertising, counterfeit goods, exaggerated claims, and unethical sales practices.
In response, the government has rolled out a series of laws and regulations aimed at bringing greater accountability to platforms, brands, and influencers. Key legislations include the Advertising Law, E-commerce Law, and various specific regulations targeting live-streaming marketing. These frameworks stipulate strict requirements for truthfulness in advertising, mandate clear disclosure of sponsored content, and hold platforms accountable for the products sold through their channels. Influencers, once operating in a relatively unregulated space, are now explicitly defined as advertisers under certain circumstances, making them legally liable for the veracity of their promotional content. The penalties for violations, as demonstrated by the Three Sheep Network case, can be substantial, ranging from heavy fines to account suspensions and even criminal charges in severe instances. This regulatory push reflects a broader government initiative to foster a healthy, trustworthy digital environment, moving away from a "growth-at-all-costs" mentality towards one that prioritizes consumer welfare and market integrity. The message is clear: while innovation and economic growth are encouraged, they must not come at the expense of consumer trust or adherence to legal and ethical standards.
The Attempted Comeback: E-commerce Training Course (June)
Fast forward to June, nearly two years after the live-streaming ban, when an account bearing the name "Three Sheep Group Class" reportedly surfaced, releasing promotional videos for a new business endeavor: offline e-commerce classes. The key instructor for these courses was identified as Zhang Kaiyang, the "Crazy Older Brother Yang." The advertisements positioned the course as a comprehensive training program designed for beginners aspiring to enter and succeed in the lucrative world of live-streaming and e-commerce. Prospective students were promised instruction on critical skills such as boosting online traffic, selecting effective themes for video creation, and navigating the complexities of digital sales. The curriculum was designed to equip individuals with the practical knowledge and strategies purportedly honed by the successful influencer duo themselves.
However, access to this supposed wealth of knowledge came at a significant cost. The pricing structure for the courses was notably steep, reflecting what might be perceived as a premium on the brothers’ perceived expertise. A three-day intensive course was priced at 1,980 yuan (approximately $290), while a more extensive 28-day program commanded a price of 19,980 yuan (around $2,950). These figures underscore the high value placed on insider knowledge and practical guidance in China’s competitive e-commerce landscape.
The launch of these courses quickly went viral, attracting widespread attention across social media platforms. The public’s reaction was a mix of curiosity, skepticism, and, in many cases, outright criticism. The irony of a suspended live-streamer attempting to teach others how to succeed in live-streaming was not lost on observers. Within days of the promotional videos being released and purchase links becoming active, a swift and unexplained withdrawal occurred. All promotional materials for the courses were deleted, and the links to purchase enrollment were removed. Three Sheep Network offered no official explanation for this sudden retraction, leaving the public to speculate on the underlying reasons.
The most logical inference drawn by many, including industry observers, was the direct contradiction between Zhang Kaiyang’s role as a live-streaming instructor and the ongoing live-streaming ban imposed on both brothers. It raised pertinent questions: How could someone prohibited from engaging in live-streaming effectively teach others its nuances and best practices? Furthermore, the prior scandal involving false advertising had significantly eroded public trust. Why would aspiring live-streamers invest substantial amounts of money to learn from individuals whose own credibility and adherence to ethical standards had been publicly questioned and penalized? The quick withdrawal likely reflects an acknowledgment of these glaring inconsistencies and the potential for renewed public backlash or further regulatory scrutiny, highlighting the delicate balance between commercial ambition and public perception, especially for influencers under regulatory watch.
Implications and Broader Impact
The recurring controversies surrounding the "Crazy Brothers" and Three Sheep Network carry significant implications for the broader influencer economy in China, consumer trust, and the efficacy of regulatory enforcement.
Influencer Accountability and Public Trust: The incident underscores the ongoing challenge of holding high-profile influencers accountable for their actions. While the initial fine and live-streaming ban were substantial, the attempt to pivot into a related educational venture, particularly without addressing the root cause of their previous suspension, raises questions about the influencers’ commitment to genuine rectification. Such actions can further erode public trust in the influencer marketing ecosystem. Consumers, already wary of deceptive practices, may become even more skeptical of claims made by online personalities, leading to a general distrust that impacts not just individual influencers but the entire industry. For an economy heavily reliant on digital word-of-mouth and perceived authenticity, this erosion of trust is a critical concern.
Regulatory Enforcement and Deterrence: The government’s swift action in the mooncake scandal demonstrated its resolve to enforce consumer protection laws. The hefty fine and live-streaming suspension served as a clear deterrent. The subsequent quick withdrawal of the e-commerce course, likely preempting further regulatory intervention or public outcry, suggests that the initial penalties had a chilling effect. This indicates that regulatory bodies are not only imposing sanctions but are also maintaining vigilance over the activities of previously penalized entities. This sustained scrutiny is crucial for fostering a compliant and ethical digital marketplace. It sends a message that circumvention of penalties will likely not go unnoticed or unchallenged.
Future of Three Sheep Network and its Founders: While Three Sheep Network’s signed content creators continued their operations, the founders’ direct engagement with the public, particularly through live-streaming, remains restricted. The company’s reliance on the brand and charisma of its founders is evident, and their inability to directly participate in live-streaming — a core component of their business model — presents a substantial strategic challenge. Their pivot to educational courses, even if short-lived, highlights an attempt to diversify revenue streams and leverage their experience in alternative ways. However, the shadow of past misdeeds and ongoing restrictions will likely complicate any future direct ventures by the brothers, potentially forcing the company to emphasize its managed talent rather than its founders. The long-term impact on the "Crazy Brothers’" personal brands and their ability to reclaim their former status will depend heavily on their future actions and adherence to ethical business practices.
The "Education" Niche and Ethical Considerations: The trend of successful influencers transitioning into teaching roles is growing, with many offering courses on content creation, social media strategy, and e-commerce. While this can be a legitimate and valuable service, the ethical considerations become paramount when the "teachers" themselves have faced severe sanctions for misconduct in the very field they are instructing. It raises questions about the qualifications and credibility of such instructors, and whether their past actions align with the values of integrity and transparency that should underpin educational endeavors. For consumers, discerning between genuine expertise and opportunism becomes increasingly difficult in such scenarios.
In conclusion, the ongoing saga of the "Crazy Brothers" serves as a microcosm of the broader challenges and transformations within China’s dynamic digital economy. It underscores the immense power and reach of influencers, the critical importance of consumer trust, and the government’s unwavering commitment to establishing a regulated and ethical environment for online commerce. The withdrawal of Zhang Kaiyang’s e-commerce course, likely a response to public skepticism and regulatory sensitivity, highlights the enduring consequences of past transgressions and the complex path to redemption in the public eye. As the digital landscape continues to evolve, the demand for accountability from all players, especially those with significant public influence, will only intensify.
