The controversy quickly spread across Chinese social media and triggered criticism from consumers concerned about the use of vulgar content in dairy marketing. Reports indicated that the male host made repeated sexual innuendos and references to sex-related transactions during the livestream, raising questions about brand oversight and the growing risks associated with e-commerce promotions.

In response, Tianjin Haihe Dairy said an internal investigation found that the account was not directly operated by the company, but by an external distributor authorized to sell under the Haihe Dairy name. The company said it immediately terminated its relationship with the distributor and revoked its authorization to use the “Haihe Dairy Official Flagship Store” identity.

Haihe Dairy also announced that it has launched legal action against the distributor, arguing that the livestream caused serious damage to the company’s reputation and brand image. At the same time, the company acknowledged its own supervisory failures and said it would hold internal staff accountable for weaknesses in oversight.