More than 40 percent of goods sold online in China last year were found to be either counterfeits or of bad quality, showing the extent of a problem that has caught up the country's fast-growing online sector, the Xinhua News Agency said in its report.
The report was delivered to the country's top lawmakers on Monday, Nov. 2, which showed that only 59 percent of items sold online last year were "genuine or of good quality."
China has been trying to improve on its reputation for selling pirated and counterfeit goods, which has long been an issue for global brands such as Apple and Louis Vuitton who have been wanting to do business in the Chinese market.
After getting renewed pressure this year over suspected counterfeits sold on its platform, Chinese e-commerce giant Alibaba Group Holding Ltd. has been pushing to stay off a U.S. blacklist for fakes.
The Xinhua report called for "accelerated legislation in e-commerce, improved supervision and clarification of consumers' rights and sellers' responsibilities."
The report added that the reforms were needed due to the rapid growth of online sales, which rose 40 percent last year to 2.8 trillion yuan ($441.84 billion).
According to the report, China wants to enhance protection for consumers online, where consumers are uncertain about how they can claim compensation or hold online vendors to account. Customer complaints about online orders reached 77,800 last year, a big leap of 356.6 percent from 2013.
An article published on firstpost.com said that the decision by the Chinese government to publicise the report is a rare move amid the public displeasure over increasing number of fake goods through online retail, which could affect the credibility of online e-commerce firms.
According to the article, there are so far 328 listed Internet companies in China, which account for 25.6 percent of the nation's market capitalization. Four of these companies have made their way to the top 10 global Internet companies, including Alibaba.
Last year, the number of online shoppers hit 361 million, representing 55.7 percent of the nation's shoppers. Online shopping represents 20 percent of all consumer demand, the report said.