In a rare public remark, China's industry regulator called out e-commerce and online shopping giant Alibaba to intensify the crackdown against counterfeited goods.
State Administration for Industry and Commerce (SAIC) head Zhang Mao said in an interview that he has already told Alibaba's founder and CEO Jack Ma that he needs to take full responsibility on the issue of fake goods proliferating in its online market, The Wall Street Journal reported.
"I've repeatedly told Jack Ma that he is not in the land of outlaws," Zhang remarked.
Zhang's comments hark back to the earlier statements made by his office regarding the matter. In Jan. 2015, the SAIC released a white paper accusing Alibaba of failing to take down fake merchandise that is being sold on its shopping sites.
According to Zhang, Ma countered the paper, saying that it did not have enough data to prove that fake goods are prevalent in Alibaba's shops. However, Zhang stressed that it was still a major indicator that the company has failed to deliver on the promise to deal with counterfeited products.
In its defense, the company accused the SAIC of misconduct and threatened to file a formal complaint. The two parties eventually came to an agreement, with the paper being taken down, Zhang revealed. For its part, Alibaba has reportedly intensified its own campaign against fake goods.
Meanwhile, a United States court has partially dismissed a lawsuit filed by several major brands, including Gucci and Ives Saint-Laurent, against Alibaba for allegedly promoting the sales of pirated goods.
The court's decision ruled that there was not enough evidence to support the allegations that Alibaba and 14 other companies conspired to sell fake goods through it, News Talk reported.
In a statement, Alibaba welcomed the decision, saying that it has always been committed to stopping the sale of such products on its site.