Alibaba Warned Again By US Trade Group Over Fakery

Alibaba Warned Again By US Trade Group Over Fakery

The US Trade Group issues another warning to the Chinese tech giant regarding the sales of counterfeited goods

Alibaba Group Holding is once again the center of attention for the US trade officials. On many previous occasions the company has been warned to look after its online marketplaces to ensure that there is no fakery whatsoever. The US trade group urged the United States government to add the Chinese tech giant on the list of notorious markets for fakes but so far it has not been done. Two of the company’s platforms, and Taobao Marketplace, were previously banned in the region and were removed from the list back in 2009 and 2012 respectively.

However the Wall Street Journal reports that the trade representatives of US have issued another warning to Alibaba Group. The group stated that it has been receiving complains from the brand owners that are not happy with Alibaba’s online sales and its platforms who still have sellers that offer counterfeit goods to the consumers. This is devaluing the products of luxury brand because consumers can order and buy same items and lower prices through Alibaba then.

It is believed that the Trade Representatives want the Chinese company to intensify its efforts and do further thorough checking on sellers available on its platforms. The Group mentioned in a report on piracy in global markets that Alibaba should join hands with other companies to eliminate fakery on its online marketplaces. The report stated, “Brand owners continue to report that Alibaba platforms, particularly Taobao, are used to sell large quantities of counterfeit goods.”

The report added that the brand and luxury brand owners have not stopped complaining even despite the company changed its conditions and enacted new security measures to eliminate fakery at the earliest. According to the report, “Despite these new procedures, USTR is increasingly concerned by rights holders’ reports that Alibaba Group’s enforcement program is too slow, difficult to use, and lacks transparency.”

The Wall Street Journal says that group will not be adding Alibaba and all its marketplaces to its list of notorious markets for fakes however it expects and further encourages the company to take serious action. Moreover, the agency wants the company to address all these complaints from the brand owners in cooperation with all the stakeholders.

Jack Ma previously said that counterfeiting is not only an issue for Alibaba but it is an issue for all the global e-commerce companies in the market. But his company along with others is ready to combat fakery and eliminate it in the coming times. The founder said that counterfeiting will not only damage the reputation of Alibaba but China as well.


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