Alibaba try to tackle counterfeiters
The rise of ecommerce has brought a range of benefits to shoppers all over the world as they have been exposed to a wider range of products, and can browse them from the comfort of their own home. However, these online shoppers are always at risk to counterfeit goods – and Alibaba have decided to crack down on it.
Counterfeit goods are illegal, and an increasing problem in the luxury goods and online shopping markets. Lots of people every year, knowingly and unknowingly, spend huge amounts of money on goods that are not genuine, and have often been cheaply produced on mass to flood a market.
This is a problem for Chinese ecommerce giants, Alibaba, as they have experienced what can be described as a large amount of counterfeit goods passing through their platform. This was noted by the fact that two weeks ago Alibaba was put onto the US’s ‘notorious markets’ list for failing to cut down or control the sale of counterfeit goods.
Now, in a very public and head-on way of making sure they are getting to grips with the issue, Alibaba have sued two vendors who were selling fake Swarovski watches through one of their online platforms, called Taobao. This marks the first time the firm has ever taken legal action over a counterfeit goods issue (and will at the very least make for some well timed good PR).
Alibaba share price over the last year
As of 05 January 2017: 93.31
The lawsuit, which is against two men that have as of yet remained unnamed, is aiming to claim 1.4 million yuan (£163,419) in damages, according to the company.
Dominion holds Alibaba in its Global Trends Ecommerce Fund.
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