AAFA Targets Alibaba Taobao For Fake Goods

AAFA believes that Alibaba has failed to remove fake goods from its platform; says U.S. government label Taobao online bazaar as a “notorious” market for fake products.

Alibaba and the American apparel trade group are trying to resolve an intensifying conflict over whether the U.S. government should be labeling the Chinese organization’s Taobao online bazaar as a “notorious” market for counterfeit products.

Alibaba news affirmed that the American Apparel and Footwear Association stated on Monday that it has asked Washington to tag Taobao once more as a “notorious” marketplace responsible for selling fake goods. It stated that this marketplace should be made a part of the American government’s list because the Hangzhou-based enterprise has failed to take the necessary steps required to remove the fake goods.

The group stated in inscribed notes presented to the U.S. Trade Representative, “Our concerns have not been addressed; Counterfeits remain rampant on Taobao and are often found on other Alibaba sites.”

Alibaba news today exclaimed that trade group known as AAFA and the Chinese corporate giant failed to meet and discuss upon the issue this month. It stated, “Alibaba stands ready to discuss any outstanding issues with the AAFA, however for months they have refused to meet with us. We work with many AAFA clients daily and they fully know that we are committed to the protection of intellectual property rights and the long-running battle to eradicate counterfeit merchandise that may appear on our marketplaces.”

Alibaba Breaking News reported that despite of deliberations with the Asian giant, the group has failed to convince the online trading platform operator to pioneer a system to remove fake goods from its webpage in a way that is “transparent, comprehensible, and fast.” The officials of USTR did not directly respond to a request for comment.

The statement of the AAFA tends to focus on Alibaba’s continuous problem. In 2011, the USTR included Taobao in its list of problematical market for bootlegged goods. It deleted the Chinese ecommerce platform from the list 12 months ago, referring the platform to address concerns by brand owners. Over inclusion on the list did not penalize the company though, it came as the most populated country has pursued to prove that it is contributing more to the safety of intellectual property.

The USTR has not taken the issue much seriously. In its March report, the department stated that it was worried regarding counterfeits on Taobao. Alibaba has been targeted at a time when it’s Chairman, Jack Ma, has stated that the Americans should not be worried regarding the problems being suffered by the second largest economy as it’s savings rate and shift towards a customer-led economy would help it to deal with harmful effects of the economic slowdown.

One could say that the recently taken step would damage the image of the highly advanced Chinese online trading giant. Analysts believe that it should meet with AAFA to resolve any issue.