China passes first law against fake goods sold online

China has passed the country’s first-ever e-commerce law that would hold online retailers accountable for the sale of fake goods and liable for a fine of up to RMB 2 million (US$291,000).

The new law passed on 31 August would hold big e-commerce companies such as Alibaba, and the discount goods-driven platform Pinduoduo accountable if products sold on the platforms are found to have violated intellectual property rights, the country’s parliament has announced.

Previously only merchants caught selling knock-offs could be held responsible.

The law is the latest effort by the country to clean up the country’s image as a main source of knock-off goods.

Giant e-commerce companies such as Alibaba and previously have been criticized by for being lenient towards merchants selling knock-offs, and lax about law enforcement.

Recently the discount-driven e-commerce platform Pinduoduo became the latest subject of investigation when its platform was found to be awash with counterfeit and copycat products from shavers to lookalike Penfolds and Château Lafite Rothschild.

The law will also ban online platform operators from deleting negative comments regarding products and services offered through their platforms.

As a response to criticism over counterfeit goods, companies such as Alibaba and have introduced their own anti-counterfeit coalitions to protect intellectual property rights.

A total of 240,000 online stores on Alibaba’s Taobao were closed last year for selling fake goods, according to Alibaba, the country’s biggest e-commerce company.

Tencent, shareholder of and owner of the country’s largest messaging app WeChat, penalised over 72,000 WeChat accounts involved in selling counterfeit products.

The e-commerce law will take effect on 1 January, 2019.

One Response to “China passes first law against fake goods sold online”

  1. A critical first step. Question is what resources will be allocated to enforcement? It is a daunting task that requires a dedicated agency. Our organization has monitored sales of counterfeit branded bottles made for illicit producers. The bottles are replicas of some of the worlds most popular brands down to small local craft distiller’s labels + bottles. The price of the replicas are $0.20 to $0.50 per bottle and ship in container quantities. This is one of the reasons why counterfeit alcohol is growing.

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to our newsletters

Sales Manager

The Old Curiosity Distillery
United Kingdom

Brand Development Executive

Manchester Gin
Manchester, UK

Senior Buyer

Speciality Drinks
London, UK

Marketing Assistant

Berkmann Wine Cellars
London, UK

PR Manager

Master of Malt
London, UK

Sales Manager

Hairy Dog Brewery
Haywards Heath, UK

National Operations Director

Amathus Drinks Plc
London, UK

Sales Executive – Hush Heath Estate

Hush Heath Estate
London/ Kent

Marketing Manager

Zonin UK
Richmond, UK

Unsigned Talent Tasting

London,United Kingdom
20th Sep 2018

Love Wine, Love Chile

London,United Kingdom
25th Sep 2018

Almaviva Masterclass

London,United Kingdom
26th Sep 2018
Click to view more

Cabernet Sauvignon Masters 2018

the drinks business is proud to announce the fifth year of its Global Cabernet Sauvignon Masters

The Global Pinot Noir Masters 2018

the drinks business is proud to announce the fourth year of the Global Pinot Noir Masters, the most extensive competition in the Global Masters series.

Click to view more