China Raps Alibaba for fake goods

China-based e-commerce megasite Alibaba is feeling the heat in its home country, following a government report that scolds the company for lax controls over the sale of bogus goods to consumers.

The Chinese government says that Alibaba and its eBay-like subsidiary Taobao are selling products that infringe on trademarks or are of substandard quality. Visitors to the site can buy everything from counterfeit cigarettes and booze, to mobile phones with bogus brand names,and equipment such as knives and wiretapping devices.

Merchants who sell items on Alibaba were allegedly bullied into not participating with competing online platforms’ promotions for big holiday sales in China, according to the government.
Alibaba is already the world’s largest online marketplace and is also trying to become a major player for American consumers, just as it comes under more scrutiny for its apparent hands-off approach to third-party sellers.

The company recently announced a deal with the U.S. Consumer Product Safety Commission that is intended to curb the import of toys and other goods that may not live up to American safety regulations.

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