New Laws Don't Stop Alibaba's Notorious Counterfeit Marketplace

Alibaba snubs brand owners, counterfeit products continue to flood the market.

January 17, 2019, Los Angeles, CA – New laws were ushered in January 1st. for China counterfeiters and their e-commerce website hosts. Fines up to $292,000 can be levied in serious cases of intellectual property infringement against both the counterfeiters, as well as e-commerce operators who fail to "take necessary measures" to prevent and stop sellers in violation of intellectual property rights. Despite requirements that online businesses must register, guarantee e-commerce transactions, provide data protection, promote consumer protection, and provide mechanisms for dispute resolution or face substantial civil and criminal penalties, Alibaba's counterfeit practices continue.

Alibaba continues to snub brand owners and flood the market with an inexhaustible supply of counterfeit goods. Appropriately named after the fable “Ali Baba and the 40 Thieves,” Alibaba and its subsidiary websites (AliExpress.com, Taobao.com, 11main.com, etc.) offer counterfeit products directly to consumers and fraudulent resellers on Amazon, eBay, Walmart and other e-commerce websites.

In response, Alibaba was publicly condemned by The Office of the United States Trade Representative, and landed on the U.S. Notorious Markets List - a designation is reserved for the world's most notorious markets for counterfeit goods. Yet, Alibaba continued to be the go-to source for counterfeit, fake and replica products.

In contrast to Alibaba's brand protection claim; "Listings of counterfeits, replicas, or other unauthorized items are prohibited on the Site strictly," The Counterfeit Report, an award winning industry watchdog and consumer advocate, found and removed over 140 million infringing items on Alibaba websites on behalf the brand owners. Recently, counterfeit complaints are now ignored, acceptance of unrealistic new reporting terms and conditions is required, and communications go unanswered.

Despite claims from Alibaba Group President Michael Evans that the company has worked above and beyond to protect brands, the fact is the company ignores its own policies and counterfeit notifications from brand owners. Counterfeits remain, consumers are deceived, and manufacturers and retailers are being harmed in a big way with little recourse.

Jack Ma, politically attached to the Communist Party, Alibaba's co-founder, and bad-boy of counterfeits has stepped down as CEO. While the lines between business and politics have become increasingly hazy, the relationship between China's government and leading internet companies continues to mature.

Alibaba and subsidiaries are best avoided.

Companies that enable and facilitate criminal activity and profit from dishonest sales which impact consumer safety, jobs and public trust create a public perception of deception and impunity. The consequence is destroyed U.S. companies and retailers, lost U.S. jobs and duped consumers. The value of counterfeit and pirated goods is forecast to grow to $2.8 trillion, and cost 5.4 million net job losses by 2022 states a 2017 International Chamber of Commerce Report. Counterfeiting is now the world's largest criminal enterprise.