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Alibaba Defends Self Vs. Latest Counterfeit Allegations

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Alibaba Defends Self Vs. Latest Counterfeit Allegations
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Alibaba Group Holding Ltd (NYSE: BABA) responded Tuesday to complaints by American retailers of counterfeit goods by saying it will take further steps to address the problem.

"Our track record of fighting illicit activities is clear," Alibaba said in a widely quoted statement Tuesday. "We must continue to do everything we can to stop these activities."

The American Apparel and Footwear Association last week called Alibaba's TaoBao platform "one of the biggest platforms for counterfeit goods worldwide."

In April 8 letters to both the U.S. Trade Representative and the U.S. Securities and Exchange Commission, the apparel group said although Alibaba recently agreed to several steps to address the problem, "implementation has been sluggish or non-existent."

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The group told the SEC that Taobao "should not be permitted to facilitate criminal activities while profiting at the expense of legitimate U.S. businesses."

The U.S. Trade Representative last month said it is "concerned" by recent Chinese government complaints about counterfeit items solid via Taobao and said it will monitor the situation.

The USTR removed Taobao from its Notorious Markets List in 2012.

Alibaba said in January it would hire hiring 300 people to form an "anti-counterfeit special operations battalion," to eradicate counterfeit merchandise on its Taobao shopping website.

Alibaba has recovered form earlier losses Tuesday and changed hands recently at $84.19, down 0.09 percent.

Posted-In: American Apparel and Footwear Association China Taobao U.S. Trade RepresentativeNews Legal Best of Benzinga

 

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