US Trade Office Keeping Tabs On Alibaba Website

US authorities are closely monitoring the company’s website for sales of counterfeit or pirated goods

Alibaba Group Holding Ltd (NYSE:BABA) is being closely monitored by the US authorities. They kept an eye on its consumer shopping website for sales of counterfeit and pirated goods, but they did not put the site on the Blacklist.

Alibaba Group has been fighting hard to tackle the counterfeit products so that it is not prone to any reputational risk, as it will be having a direct impact on its share prices. The company may face a decline in its market value as a result, as reported in current Alibaba updates.

Upon allegations, a spokesperson from the company reportedly said, “Our track record of fighting illicit activities is clear, and like all global companies in our industry, we must continue to do everything we can to stop these activities.”

She further added that the company, in order to fight against the fake goods supply, the giant has taken measurable steps, which also includes conducting random checks, all the while using data-mining technology and offering an online complaint forum.

The US Trade representatives have previously removed the Chinese consumer website Taobao.com, from its list of famous markets in 2012. Taobao.com is a platform that connects consumer to retail brands. It does not sell merchandise itself and makes most of its revenue from commission and advertising.

According to Bloomberg report in December 2014, an inspection was done on Alibaba for selling counterfeit goods online, and is said to have removed 90 million listings that were a breach of the intellectual property rights. Moreover, it claims to have spent more than $161 million, just to ensure that it does not have fake goods and protect its consumers 2013. Despite the heavy investments for this purpose, the Chinese regulator still insisted that there was a lack of standardization and violation of trademarks in Alibaba’s sold products.

According to latest Alibaba reports, the company penalized around 131,000 sellers in September 30 2014.The company penalized around 131,000 sellers in September 30 2014. With the corporation of Chinese law enforcement agencies, more than a thousand cases of counterfeiting were filed, arresting 400 suspects.

Alibaba said that it is planning to introduce a system to fast track requests to remove the counterfeit items. The company has also announced the opening of its first data center outside china, which will be located in Silicon Valley. Moreover, it will be looking to target foreign clients for which it will be necessary for it to have a good image.

Alibaba’s Taobao platform basically connects relatively small vendors with the Chinese customers only. The giant's Tmall platform also comes under its operation, which basically is for the larger companies who seek to run online stores.

Alibaba Puts The Internet Risks in China and Benefits For Government

While Alibaba gets accused of missteps and counterfeit goods, the company benefits China with major items.

Latest Alibaba news is regarding the trio of stories that have been taking rounds. In a very nice way, the Chinese e-commerce titan has summarized the risks and also the benefits that the current Internet juggernauts in China exist for the country’s government. Furthermore, it suggested that there should be a fine line expressed between taming the newly emerged giants while also making sure that their economic powerhouses have not been cut down. It took merely a decade and the world has seen Alibaba, Baidu and Tencent evolve from start-ups that were venture based into one of the most reputable and revenue generating fortune companies in the world.

The evolution of these companies and the stature has not only brought a positive global placement of China but also the essential tax dollars for the local governments and also the tech-related jobs that Beijing wishes to utilize in order to replace the manufacturing labour associated to lower-tech. However, at the very same time, these young and on-growing companies are bound to take vulnerable missteps, those missteps can result in a bit of chaos in the huge Chinese marketplace and the capital shall become careful regarding that.

Alibaba news reports that one conspiracy has been haunting the company since the beginning of the year when Chinese e-commerce titan had been accused of allowing piracy all over the subsidiary, Taobao.com which is immensely popular in the country. Taobao.com is an e-commerce platform which is C2C based. The accusation had been made by the regulators of the country and this has not stopped here. The company’s home province, Zhejiang has fined it for 800,000 Yuan due to the claim that it had let the merchants have access to its B2C marketplace which is Tmall.com just so it can demeanour promotions that are misleading.

In the meantime, Alibaba has suffered through this publicity that was ultimately negative, the benefits that the company has aimed to provide and has been providing to the country’s economy are residing in the other items. Zhejiang’s governor has expressed that Alibaba, alone provides more than 30 million Yuan per day to the provincial tax reserves.

The other item reported is claiming that Jack Ma, Alibaba’s founder has been the country’s biggest philanthropist by donating a whopping amount of 14.5 billion Yuan last year in charity.

Let’s not forget the counterfeit goods accusation that has been rumouring as well. Alibaba has been accused of having counterfeit goods on its e-commerce websites and has been under observation for it.

However, as far as the contribution of this company is concerned, lately with ‘Cloud Hospital’ and its immense interest and acquisitions in entertainment industry are enough proves that it is making its global and native presence felt almost everywhere.