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Alibaba Denies U.S. Group's Counterfeit Accusation on Taobao

| Apr 15, 2015 07:27 AM EDT

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Chinese e-commerce giant Alibaba Group Holding has denied allegations by the American Apparel & Footwear Association (AAFA) that it is tolerating the sale of counterfeit products on its Taobao e-commerce platform, the Wall Street Journal reported.

U.S.-based clothing trade group AAFA sent letters last week to officials of the Securities & Exchange Commission and the U.S. Trade Representative, saying that Taobao is "one of the platforms for counterfeit goods worldwide."

AAFA said it had discussed the issue with Alibaba, but the Chinese firm has been slow in implementing measures to curb counterfeit products.

"The slow pace has convinced us that Alibaba is either not capable of or interested in addressing this problem," the trade group said.

Alibaba refuted AAFA's statement, saying it is taking the matter seriously, and is committed to stopping the sale of fake products "because the health and integrity of our marketplaces depend on consumer trust."

Alibaba said it has been collaborating with the U.S. trade group since 2012, and has been implementing several measures to fight the spread of counterfeit goods on its marketplaces, Footwear News reported.

Some of these measures include examining and tracking transactions of IPR-infringing products using data-mining technology as well as conducting random checks through the use of third parties to buy suspected fake products on its marketplaces.

"We work closely with our government partners, brands and widened our coalition with industry associations, signing MOUs with BSA, IACC and MPAA to tackle this issue at its source," an Alibaba spokesman told Footwear News.

"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," added the spokesman.

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