Pinduoduo (拼多多), a money-for-value social-networking-based e-commerce platform, is now in disputes with store-owners doing business on the platform.

Store owners believed Pinduoduo executed improper standards when evaluating their products. The platform launched a wave of internal quality and authenticity check to crack down on counterfeit goods. Suspicious products examined would be labeled in quality ranks A, B, C, and D, in which A stands for the worst situation. As punishment, Pinduoduo will freeze the store owners’ business trading accounts and orders. The owner is demanded to compensate consumers’ loss by paying up to 300% respective sales revenues.

According to a store owner, Pinduoduo didn’t specify why after 3 months’ legal operation, his products were labeled as A goods. He told local media (in Chinese), if it’s just about one shipment of the goods he sold, he doesn’t understand why would the platform demand to freeze almost all of his trading orders in the recent 3 months. This owner added that he has to pay an extra RMB 180,000 fine besides the punishment fee to resume his business on Pinduoduo.

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Runhua Zhao

Runhua Zhao is a technology reporter based in Beijing. Connect with her via email: runhuazhao@technode.com