US warns again Alibaba over selling counterfeit goods

The US Trade officials have served another notice of warning to Alibaba Group Holding Ltd over selling counterfeit goods. The US Trade Representative office has been receiving complaints from several brand owners against the Chinese e-Commerce giant Alibaba Group Holding Ltd for selling counterfeit goods. The US officials asked Alibaba to eliminate counterfeit goods on its platform.

In a latest report, the US Trade Representative said: "Brand owners continue to report that Alibaba platforms particularly Taobao are used to sell large quantities of counterfeit goods." The Office of US Trade Representative has directed Alibaba Group to work with manufacturers to eliminate the counterfeit goods from its online platforms. Earlier in March 2015, the US Trade Representative office issued a warning to Alibaba.

The US Trade Representative in a latest report on 'Piracy in Global Markets,' has stated that Alibaba Group on its platform like Taobao, which is the compnay's massive online bazaar, is engaged in selling counterfeit goods. Several companies are complaining against Alibaba Group including Taobao over selling counterfeit goods, as per a report published by The Wall Street Journal (WSJ).

However, the US Trade Representative Office is not adding the Chinese e-Commerce major to its list of notorious markets for fakes. The US officials also said that Alibaba Group would be under continuous monitoring next year for signs of improvement. Alibaba Group is New York Stock Exchange-listed company and working closely with US-based retailers and entertainment companies.

The latest report from the US Trade Representative office further said, as reported by Bloomberg, that Alibaba Holding Group has to do a better job of fighting the sale of counterfeit goods if it wishes to remain off the US government's annual 'Notorious Markets List.' The latest warning letter would spoil the reputation of Alibaba and affect its global expansion plans.

The problem of counterfeit goods is a cause of concern for all the global online retailers. The US Trade Representative office is keen on controlling the problem. The latest warning from the US officials is the second one as the first time it served cautioning letter in March 2015.

Tech Times reports that Alibaba's effort on checking counterfeit goods is too slow and hard to use as brand owners complained, who also claim its lack of transparency. However, the agency wouldn't add Alibaba to its list of notorious markets for fakes. But, it'll encourage the company to work with companies and manufacturers to address the increasing complaints from several brand owners.

Alibaba Group recorded 386 million active buyers on its platform as on September 2015. Alibaba Group's Taobao online platform (Tmall) is a major platform for mom-and-pop stores. It sells everything ranging from guitar straps to yoga mats for cats. The US Trade Representative Office has stated that several brand owners are complaining about Tmall for selling counterfeit products.