• Chinese authorities prepare to destroy fake goods confiscated by police.

Chinese authorities prepare to destroy fake goods confiscated by police. (Photo : www.blogs.ft.com)

The State Administration for Industry and Commerce (SAIC) has announced on its website on June 4, Thursday, that it will launch a new campaign dubbed "Red Shield Net Sword," aimed at eliminating counterfeit and substandard goods from online trading sites, according to a report by the Wall Street Journal.

Like Us on Facebook

The move came after the Chinese government agency backed down from its dispute with e-commerce giant Alibaba Group Holding Ltd. over issues of counterfeit goods.

An article published by technologynewschina.com said that brand owners and intellectual property rights experts say the problem remains prevalent despite a similar drive conducted by SAIC against online fake products last year. The campaign resulted in inspection of more than 1.33 million websites and online stores, the closure of 2,201 websites, the removal of 36,000 listings of merchandise, and fines and confiscated funds amounting to 113 million yuan ($18.2 million).

The report said that the new campaign will be strictly supervised and will focus on the responsibility of platform operators in curbing fakes.

SAIC's notice this year urged local departments to strengthen supervision and oversight of trading platforms, the report said.

"Strictly implement the legal responsibility that platform operators must bear," the notice said.

The notice also made reference to the dubious practices of merchants on China's e-commerce sites, such as the practice of faking transactions to expand sales volumes or seller credibility.

It also asked local departments to check if the "hassle-free, seven-day return" policies are observed by platform operators, who are encouraged to make public their rules on sales promotions.

In a January report, SAIC had accused Alibaba for allowing sales of counterfeit goods, bribery and other illegal activity, citing its lax oversight of the platform. Alibaba said that the accusations were unfair. The report was later removed from the regulator's website, prompting the company to claim vindication.

The report said that Chinese regulators have been taking a more active and vocal stance against counterfeit goods on Chinese e-commerce sites in recent months.