Alibaba Group Holding Ltd Assures Quality Watchdog Of Fighting Fake Goods

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Alibaba Group Holding Ltd Assures Quality Watchdog Of Fighting Fake Goods
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Alibaba said it would use data collected from cloud computing and customers to intensify the effort

On Monday, Alibaba founder Jack Ma met with Zhi Shuping, chief of the Chinese quality watchdog General Administration of Quality Supervision, Inspection and Quarantine (GAQSIQ). Ma pledged to fight counterfeit goods as another Chinese regulator has accused the company of failing to prevent the sales of fake goods on its platforms.

Alibaba to step up fight against fakes

Ma told Zhi Shuping that Alibaba would work with the government to track down and remove fake goods from its Taobao and Tmall sites, reports Lulu Yilun Chen of Bloomberg. Alibaba said it would use data collected from cloud computing and customers to intensify the effort. Jack Ma’s meeting with the GAQSIQ head comes less than a month after the State Administration for Industry and Commerce (SAIC) issued a scathing report on Alibaba’s business practices.

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The SAIC said that Alibaba employees took bribes from crooked merchants in return for favors. However, the SAIC softened its tone on Alibaba following a meeting between Jack Ma and the regulator on January 30. After the meeting, the regulator said that its critical report was only a meeting memo that had no “judicial effect.” Ma had shown his willingness to cooperate with regulators on the issue.

Alibaba must show deference to all regulators

After Monday’s meeting, Zhi Shuping said Alibaba was a global brand and should lead efforts to protect consumers’ interest. Cao Lei of China E-Commerce Research Center told Bloomberg that the Hangzhou-based company must show deference to all the regulators. Last week, Ma said that he didn’t want the company to be misunderstood that it was not transparent.

Alibaba aims to serve more than two billion customers outside China. To achieve that goal, the company needs to build a reputation as a platform for quality goods. Alibaba spent more than $160 million before its September IPO to remove about 90 million counterfeit listings from its platforms.

Alibaba shares rose 1.10% to $86.95 in pre-market trading Tuesday.

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