China's e-commerce giant Alibaba has vowed to get rid of counterfeits on its online platforms following the suspension of its membership in an international anti-counterfeiting group, China Daily reported.
The report said that the International Anti-Counterfeiting Coalition, a nonprofit global organization that fights counterfeit products and piracy, suspended the membership of Alibaba Group Holding on Friday, May 13, a month after it became the organization's first e-commerce member.
According to the report, the suspension came after the organization's president was questioned about conflicts of interest, while complaints about Alibaba were brought out by some members who look at the Chinese company as haven for cheap counterfeits.
In a statement on Sunday, May 15, Alibaba said it will continue its relations and cooperation with the coalition despite the suspension.
"As the world's largest e-commerce platform, Alibaba is an integral part of the solution to solving the worldwide issue of counterfeiting," the company said. "We will continue to discuss and communicate with more brands in the IACC . . . expedite the process to remove products identified as fakes and protect the interest of brands, no matter big or small."
More than 250 member companies, including leading brands such as Apple and Rolex, belong to the coalition.
Citing sources familiar with the matter, the report said that following the suspension, Alibaba Executive Chairman Jack Ma may likely cancel his plan to deliver a keynote speech at the coalition's annual spring conference to be held in Orlando, Florida, from May 18 to 20.
Alibaba is shifting its reputation as a platform that sells cheap goods to one that provides good-quality, genuine brands, and its membership in the coalition would support this transition.
As the world's largest online retailer, the Chinese e-commerce giant needs this global recognition, Tian Hou, an analyst at TH Capital in Beijing, said.
"It is willing to clean house, but all transitions and upgrading require time," Tian said.
The memberships of two U.S. e-commerce sites, Wish.com and The RealReal, are also pending with the coalition.