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Feature: Homemade food sold on WeChat, authentic yet mostly illegal

Source: Xinhua   2016-10-06 18:23:33

by Chenchen Shen

LOS ANGELES, Oct. 5 (Xinhua) -- Annie Xiong, an immigrant to Los Angeles from China, recently joined a group on the popular social messaging app WeChat. But chatting isn't what Xiong has on her mind: She uses the group to order authentic cuisine from her hometown Wuhan, such as pot-stewed duck neck and spicy beef noodles, from a cook right in Los Angeles.

"Homemade food is more authentic," Xiong told Xinhua. "This cook on WeChat is from Wuhan, and his food really takes me back home."

Lower prices are another draw. "They cook at home, so they do not pay rent like restaurants do, there is no tax, no delivery fee, no tips, therefore the food is cheaper," Xiong said. "All I have to do is order in the chat group, go out to meet the cook and pay for the food."

WeChat is no doubt the dominant social messaging platform among Chinese at home and abroad. In China, it can be used to pay bills, book hotels, buy movie tickets, pay for parking fees and order food. Chinese living abroad use it to keep in touch with friends and family around the world and join chat groups of common interest.

In the United States, "it is also a very good app for new immigrates and students," said Daniel Deng, a California licensed attorney. "They can get information on almost everything, make friends and ask for help. At the same time, you find people renting cars illegally and carrying out pyramid schemes.

"By using this messaging app, people are doing different kinds of small business on WeChat all the time. It is a grey area, and food is even more special," Deng said.

According to California Homemade Food Act of 2013, the manufacturing and sale of certain homemade food products is legal as long as meat isn't involved.

"Meat is more susceptible to bacterial growth and more likely to cause health problems or even food poisoning," Deng explained, adding that the sale of non-meat food still requires a permit from the County Department of Health.

In other words, amateur cooks on WeChat operating in the state are doing business illegally without the necessary permits. These homemade food businesses also face issues related to illegal work and taxes.

"For those cash-only business, when they file their tax report, basically they can report as little they want for income because no one can really trace the money," a California licensed CPA, who declined to be named, told Xinhua.

"If any illegal income was reported, the Internal Revenue Service (IRS) will estimate the income based on its own system and fine the business owners," he said.

Xiong is aware that her work is illegal, but she isn't worried since she only takes cash. Furthermore, there is no law prohibiting people from buying food from illegal vendors. So far, there is lack of regulation regarding online-to-offline businesses on WeChat in the United States.

"Although it is illegal, it is very hard for the U.S. government to actually check all this information on WeChat," Deng said.

"Only if something major happened, like food poisoning, the vendor will face criminal prosecution from the government. Otherwise, if someone files a complaint about the illegal vendor, the Health Department will ban the business with a fine of up to 1,500 U.S. dollars, " said Deng.

Editor: An
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Feature: Homemade food sold on WeChat, authentic yet mostly illegal

Source: Xinhua 2016-10-06 18:23:33
[Editor: huaxia]

by Chenchen Shen

LOS ANGELES, Oct. 5 (Xinhua) -- Annie Xiong, an immigrant to Los Angeles from China, recently joined a group on the popular social messaging app WeChat. But chatting isn't what Xiong has on her mind: She uses the group to order authentic cuisine from her hometown Wuhan, such as pot-stewed duck neck and spicy beef noodles, from a cook right in Los Angeles.

"Homemade food is more authentic," Xiong told Xinhua. "This cook on WeChat is from Wuhan, and his food really takes me back home."

Lower prices are another draw. "They cook at home, so they do not pay rent like restaurants do, there is no tax, no delivery fee, no tips, therefore the food is cheaper," Xiong said. "All I have to do is order in the chat group, go out to meet the cook and pay for the food."

WeChat is no doubt the dominant social messaging platform among Chinese at home and abroad. In China, it can be used to pay bills, book hotels, buy movie tickets, pay for parking fees and order food. Chinese living abroad use it to keep in touch with friends and family around the world and join chat groups of common interest.

In the United States, "it is also a very good app for new immigrates and students," said Daniel Deng, a California licensed attorney. "They can get information on almost everything, make friends and ask for help. At the same time, you find people renting cars illegally and carrying out pyramid schemes.

"By using this messaging app, people are doing different kinds of small business on WeChat all the time. It is a grey area, and food is even more special," Deng said.

According to California Homemade Food Act of 2013, the manufacturing and sale of certain homemade food products is legal as long as meat isn't involved.

"Meat is more susceptible to bacterial growth and more likely to cause health problems or even food poisoning," Deng explained, adding that the sale of non-meat food still requires a permit from the County Department of Health.

In other words, amateur cooks on WeChat operating in the state are doing business illegally without the necessary permits. These homemade food businesses also face issues related to illegal work and taxes.

"For those cash-only business, when they file their tax report, basically they can report as little they want for income because no one can really trace the money," a California licensed CPA, who declined to be named, told Xinhua.

"If any illegal income was reported, the Internal Revenue Service (IRS) will estimate the income based on its own system and fine the business owners," he said.

Xiong is aware that her work is illegal, but she isn't worried since she only takes cash. Furthermore, there is no law prohibiting people from buying food from illegal vendors. So far, there is lack of regulation regarding online-to-offline businesses on WeChat in the United States.

"Although it is illegal, it is very hard for the U.S. government to actually check all this information on WeChat," Deng said.

"Only if something major happened, like food poisoning, the vendor will face criminal prosecution from the government. Otherwise, if someone files a complaint about the illegal vendor, the Health Department will ban the business with a fine of up to 1,500 U.S. dollars, " said Deng.

[Editor: huaxia]
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