China's Consumer Protection Watchdog Reports On Alibaba
In a report issued earlier this year, The Chinese Government’s SAIC accused Alibaba of allowing merchants to operate without required business licenses, to run stores selling famous brands without authorization, and selling fake products. The Chinese State Administration for Industry & Commerce (SAIC) is a government watchdog for consumer protection, trademark protection and business practices.
The report also said that Alibaba employees took bribes, and the e-commerce giant had not fixed flaws in customer feedback or internal credit-scoring systems. The government watchdog said “For a long time, Alibaba hasn’t paid enough attention to the illegal operations on its platforms, and hasn’t effectively addressed the issues.” The report went on to say “Alibaba not only faces the biggest credibility crisis since its establishment, it also casts a bad influence for other Internet operators trying to operate legally.”
SAIC said Alibaba was still allowing sales of contraband including fake cigarettes and alcohol, as well as items “that threaten public safety” such as knives and phone-tapping devices.
The watchdog says: “A huge number of merchants” haven’t registered for operating licenses and are engaging in illegal behavior including bribing Alibaba employees.
The report also accuses Alibaba of allowing merchants to mislead customers during sales promotions on Nov. 11 and Dec. 12.
“Some operators on the platform have created fake transactions and deleted negative comments to improve their own and others’ reputations,” SAIC said.
For more details see: China Accuses Alibaba of Lax Oversight of Merchants - Bloomberg Business
What Does This All Mean For Buyers?
The report also said that Alibaba employees took bribes, and the e-commerce giant had not fixed flaws in customer feedback or internal credit-scoring systems. The government watchdog said “For a long time, Alibaba hasn’t paid enough attention to the illegal operations on its platforms, and hasn’t effectively addressed the issues.” The report went on to say “Alibaba not only faces the biggest credibility crisis since its establishment, it also casts a bad influence for other Internet operators trying to operate legally.”
SAIC said Alibaba was still allowing sales of contraband including fake cigarettes and alcohol, as well as items “that threaten public safety” such as knives and phone-tapping devices.
The watchdog says: “A huge number of merchants” haven’t registered for operating licenses and are engaging in illegal behavior including bribing Alibaba employees.
The report also accuses Alibaba of allowing merchants to mislead customers during sales promotions on Nov. 11 and Dec. 12.
“Some operators on the platform have created fake transactions and deleted negative comments to improve their own and others’ reputations,” SAIC said.
For more details see: China Accuses Alibaba of Lax Oversight of Merchants - Bloomberg Business
What Does This All Mean For Buyers?
- It means that little confidence can be placed in Alibaba’s verification system or Gold Supplier rating.
- It also means that although 90 million fake product listings were deleted prior to Alibaba’s float on the NYSE, the fakes are back.
- It means that feedback scores can’t be trusted.
- It means that sellers listed on Alibaba continue to mislead buyers.
- It means that Alibaba can’t or won’t deal with illegal activities on its sourcing platform.
- It means that bribing of Alibaba employees is still taking place even after it was supposed to have been cleaned up after the “Alibaba and the 2236 thieves” scandal.
=> Check Out My Internet Marketing Blog <=
Steve Browne, online business strategies, tips, guidance, and resources
SteveBrowneDirect
RADNESS Australia's #1 action sports gear shopping centre
Mr Wedding Ring Mens Wedding Ring Store