From: Warrior Forum
In a report issued earlier this year, The Chinese Government’s SAIC accused Alibaba of allowing merchants to operate without required business licenses, to run stores selling famous brands without authorization, and selling fake products. The Chinese State Administration for Industry & Commerce (SAIC) is a government watchdog for consumer protection, trademark protection and business practices.
The report also said that Alibaba employees took bribes, and the e-commerce giant had not fixed flaws in customer feedback or internal credit-scoring systems. The government watchdog said “For a long time, Alibaba hasn’t paid enough attention to the illegal operations on its platforms, and hasn’t effectively addressed the issues.” The report went on to say “Alibaba not only faces the biggest credibility crisis since its establishment, it also casts a bad influence for other Internet operators trying to operate legally.”
SAIC said Alibaba was still allowing sales of contraband including fake cigarettes and alcohol, as well as items “that threaten public safety” such as knives and phone-tapping devices.
