Chinese eCommerce company Alibaba has ran into trouble again over counterfeit goods. This time it is being sued by Paris-based luxury brands maker Kering SA, which owns and operates brands like Gucci, Balenciaga, Yves Saint Laurent and others, for allegedly listing counterfeit items for sale on its platform. The lawsuit was filed on Friday and it alleged that, “Alibaba and its associated companies “knowingly encourage, assist, and profit from the sale of counterfeits on their online platforms.”
However, as per a WSJ report, Alibaba said that the complaint had no basis and it has a “strong track record” of helping brands fight counterfeits. “Unfortunately, Kering Group has chosen the path of wasteful litigation instead of the path of constructive cooperation. We believe this complaint has no basis and we will fight it vigorously,” an Alibaba spokesperson said.
This is not the first time when Kering filed a lawsuit against Alibaba, In July 2014 a similar suit was filed against retail company but after two weeks Kering withdrew the suit while worked toward a resolution with Alibaba.
It has been in news from a long time for similar allegations, against its online shopping site Taobao being full of counterfeit merchandise. Just last week its B2C marketplace was banned in Taiwan over investment policy violations.
In December 2014 it removed 90 million counterfeits from its website, but it appears that it is still having a hard time in keeping its sellers in check.