Famous Chinese e-commerce company, Alibaba group, is having tough a time facing government criticism.
Allegedly, it is all due to the fact that there are serious amounts of fake goods being sold through Alibaba’s retail sites.
According to the China SAIC (State Administration for Industry and Commerce) report, Alibaba will have to make some serious changes to its company’s policy if it don’t want to completely lose its credibility.
This was not completely unexpected as, in 2012, U.S. authorities put Alibaba’s Taobao Marketplace on their list of major offenders, due to the immense amount of counterfeit goods sold and delivered to the U.S.
However, they dropped the charges once they saw that Alibaba was making progress with fixing the situation.
China’s SAIC pointed out the existing problem last July, and once again this month, which could be considered somewhat surprising bearing in mind that have been times when the Chinese government has praised the success of this company.
The company standing behind the famous Tmall.com and Taobao Marketplace holds over three-quarters of China’s online retail market, according to Analysys International. Due to that fact the alleged problem is considered to be a real crisis in the e-commerce world, as there are millions of sellers making income through those sites.
That doesn’t change the fact that only 37 per cent of the sampling SAIC bought through Taobao was authentic, says the report released a week earlier.
However, Alibaba group did respond to SAIC’s report saying that it is doing its best to deal with this issue, adding that it will gladly cooperate with authorities on solving the problem, but that they also fear that this could bring to over-regulating the market.