Alibaba Group Holding Ltd (NYSE:BABA) has mentioned in a statement that the company possess a range of measures to fight the growing counterfeits it has been facing on its website. The remarks come after a trade group had formally requested the U.S government to help them as they prod the Chinese e-commerce company. This will be primarily aimed towards the fake goods, which Alibaba allegedly sells.
There has been growing concerns over the fake products on Alibaba’s platforms (such as the online marketplace of Taobao). However, that being told, the U.S Trade office had decided to remove Taobao from its “notorious markets” list in 2012. This happened after the Trade office recognized the level of progress made by Taobao.
Moreover, in an attempt to flare up the issue, the American Apparel & Footwear Association (AAFA) had sent a letter U.S Trade Representative, Michael Forman on April 8. The letter mentioned that AAFA was conviced that Alibaba has been either incapable, or is showing the least interest to address the problelem.
The AAFA has also mentioned how it regrets U.S Trade Office’s decision to remove Taobao from their blacklist. It believes that since being blacklisted, the problem had worsened and now AAFA has urged to the USTR to send a clear message. The message will be to relist Taobao unless more action were taken.
In a response to the matter, Alibaba has mentioned on Tuesday that the e-commerce giant is taking measures to tackle counterfeits. It also plans to work with Chinese authorites and cooperate with brand owners, whose number could easily cross 1,000, and several industry associations as well.
Alibaba Group Holding Ltd (NYSE:BABA) also mentioned that it has been in talks with the AAFA since 2012. These talks were more about the best ways to tackle counterfeits. Alibaba had displayed their level of commitment to continue to do so.
Analysts believe that counterfeiting could be responsible for the fact that Alibaba’s shares slid 19% for the year to date.
