Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Alibaba Group Holding Ltd (BABA): Only 37% Taobao Goods Authentic, Says Chinese Gov’t

Alibaba Group Holding Ltd (NYSE:BABA) is in a rare public dispute against Chinese authorities in which the country’s regulators have revealed that only 37% of goods on the Chinese electronic commerce giant’s Taobao site are authentic.

Alibaba, is BABA a good stock to buy, Chinese government, dispute, fakes, counterfeit, China State Administration of Industry and Commerce

In a report from Eunice Yoon on CNBC, Alibaba Group Holding Ltd (NYSE:BABA) is said to be battling a tough study by the State Administration of Industry and Commerce into its web properties’ popularity as a place to sell counterfeit goods.

“We’re seeing a very rare public dispute occurring between Alibaba and the Chinese authorities here over the authenticity of the goods that it sells on its sites especially on its popular consumer-to-consumer site Taobao. In a very unusually strongly-worded statement and white paper, the state regulator said that they found that many of the products sold on the site were either substandard, violated trademarks or just downright illegal,” Yoon said.

Alibaba Group Holding Ltd (NYSE:BABA) has been battling counterfeits for a long time, especially now that it’s a publicly-traded company in the United States.

According to Yoon, the new white paper and statement from the regulators in China reveal just how massive fake goods are on Taobao, one of the sites of Alibaba Group Holding Ltd (NYSE:BABA).

“This comes just days after the same agency issued another survey where they said that out of the sample of goods that they themselves examined, only 37% of them were authentic,” Yoon said.

The study was more flattering to, a rival of Alibaba, as authorities in China say that 90% of goods on the site are genuine. Compare this to 37.25% for Taobao and 85.7% on Alibaba’s T-Mall.

Alibaba Group Holding Ltd (NYSE:BABA)’s Taobao, in an open letter, is openly fighting the study questioning the sampling and methodology of study. The government then released the whitepaper to counter the company’s letter.

This is the first open fight between the e-commerce darling and the Chinese government. While the authorities have panned Alibaba for relaxed internal controls, the company said that counterfeits are like a “tumor” in economic development and that they are willing to work with the country’s departments to cleave this tumor.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!