IN THE NEWS

Women's Wear Daily|Jan 28, 2015

Alibaba in Hot Water With Chinese Regulators

SHANGHAI — E-commerce giant Alibaba has been hit twice in one week by scathing reports from Chinese regulators.


On Wednesday, the State Administration for Industry & Commerce released the “Alibaba White Paper” on its Web site.


The latest release accuses Alibaba’s consumer-to-consumer platform Taobao of turning a blind eye to piracy and counterfeit products as well as knowingly allowing merchants to sell without legitimate business licenses, not doing enough to enforce the real-name registration requirement of sellers and encouraging misleading promotional activities.


According to the SAIC, Taobao employees accepted bribes and went so far as to warn store holders of confidential reports before regulators released them, in order to get fake products removed prior to government crackdowns.


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