Alibaba Introduces Its Three Strike Method to Counteract Fake Goods.
As the days continue to pass by for its major US IPO, Chinese giant e-commerce firm Alibaba is increasing its efforts to cut down on the fake goods on its international sites after having recently announced its plans to introduce a ‘three-strikes’ rule for the coming month.
The company has openly admitted that tracking down counterfeit good and sellers across its own network of its will be quite the challenge since “new listings for fakes appear all to regularly,” but its focusing on the problem for its international service Alibaba.com and AliExpress. Which shall cover B2B and B2C sales respectively.
With this new ruling, a retailer found guilty of offering fake goods shall receive an official warning letter, that will leader escalate to a one-week listing and search removal if they offend once again. Lastly, if a merchant is hit with a third warning, then their account is banned, something this chart below shall show.
Under the new rules, a retailer found guilty of offering fake goods will receive an official warning letter, that escalates to a one-week listing and search removal if they offend again. Finally, if a merchant is hit with a third warning, then their account is banned, as the chart below details.
“The Three-Strikes system is designed to make justice more swift for blatant, repeat infringements on Alibaba.com and AliExpress. The policy is aimed at sellers of merchandise that is clearly counterfeit and merchants who deliberately create product listings to thwart automated and human detection, for example by posting look-alike, but phony, modified trademarks,” the company says in a released statement on their blog.
This new system will replace the existing AliProtect fraud initiative which Alibaba says has been “well received,” but did not deal with repeat offenders as well as it could have.
The company goes on to say that some users feedback has suggested a one-strike system. They argue against this, stating that its policy is about making it easy to do business anywhere, while such a rule could affect those who are completely unaware of its policies.
“A One-Strike rule may indiscriminately kill off merchants who may be careless or ignorant when it comes to these standards. The Three-Strikes system targets blatant and intentional repeat infringers while giving legitimate but ignorant business owners an opportunity to learn to follow the rules,”Alibaba legal counsel David Ho explains.
Alibaba has previously partnered up with fashion brand Louis Vuitton in order to help cut down on fake goods sold in China. The company has steadily increased their focus for its international business during this year, in conjunction with its US IPO, thus making complete sense that its cracking down on its international site to ensure that they appeal to new shoppers, sellers and brand that are learning about or using them for the very first time.
Alibaba’s IPO is filled to value the firm at more than $150 billion. Reports have suggested that the listing is scheduled for sometime during August, but it’s currently not clear which market Alibaba will list on.