A Chinese regulatory body has vowed to increase random quality checks for online goods in an attempt to stamp out the counterfeit issues that have continued to taint China’s e-commerce industry.
China’s State Administration for Industry and Commerce (SAIC) is the same regulatory body that released a damning white paper this January on Alibaba’s lax attitude to counterfeit products on their e-commerce platforms. Alibaba’s rival JD. com has also been called out for their oversight in tackling counterfeit products by the same body.
According to SAIC, the companies that fail to meet their ongoing standards will be forced to halt sales. The issue of counterfeit goods has been damaging for China’s e-commerce platforms as many look to expand overseas. At the same time the government has increased scrutiny over the past year, hoping to undo some of the negative stereotypes attached to China’s online trade.
As the parent of China’s biggest e-commerce platform, Alibaba has ramped up investments in counterfeit technology, including advanced QR code technology that will allow products to be scanned for authenticity on delivery. They also launched an English language complaints service for companies and individuals to report counterfeit products.
Alibaba has become increasingly conscious of the problem in 2015, which Jack Ma dubbed Alibaba’s “year of globalization.” With an influx of new partnerships inviting foreign brands onto the platform, Ma has spoken out several times vowing to crack down on the sale of fake goods.
According to SAIC’s most recent statement, companies that host counterfeit goods are responsible for their monitoring and removal. Those that fail to comply with be subject to penalties from their local regulators.