Alibaba Face Off With Chinese Regulator Over Fake Products

hackingbear writes China's State Administration of Industry and Commerce on Wednesday issued a scathing report against one of the country's biggest stars, accusing e-commerce giant Alibaba of failing to do enough to prevent fake goods from being sold on its websites. SAIC said Alibaba allowed "illegal advertising" that misled consumers with false claims about low prices and other details. It claims some Alibaba employees took bribes and the company failed to deal effectively with fraud. Alibaba fired back with charges of bias and misconduct by accusing the SAIC official in charge of Internet monitoring, Liu Hongliang, of unspecified "procedural misconduct" and warned it will file a formal complaint. Such public defiance is almost unheard of in China. Apparently, Alibaba has long attained the too big to fail status.

Comments

What?

[ArchieBunker]

I go to Alibaba because they sell cheap knockoffs.

Turnabout is fair play

[RalphSlate]

If corporate America can offshore the production of its goods to China, displacing US workers, but continuing to keep prices high, then I see this as a fair and just response to that. Cut out the middlemen, it is good for the US consumer, and that's all that matters, right? Just like global trade.

Re:Great!

[Nikker]

This is merely a waltz for the public. China knows what they are getting into with Alibaba, the ability to take what they have lying around and sidestep having to find someone else sell it for them. Right now China basically manufactures for the world but they sell at small margins so that resellers / contractors sell the goods at a markup to the rest of the world. Alibaba gives a chance to sell directly to the consumer. The Chinese government wants Alibaba to seem strong willed so "The West" builds confidence in buying their stuff. In reality most of what Alibaba sells is leftovers and over runs.

I personally don't think China would leave something this public to chance, most of Alibaba's backers are the who's who of Chinese nationals and Chinese mainland (which the govt controls) makes everything Alibaba sells. It's hard to picture Alibaba being as rogue as they put on.