Dive Brief:
- Alibaba has denied claims that it profited from the sale of counterfeit goods as part of a lawsuit brought by Kering SA, the holding company behind the Gucci, Yves St. Laurent, and other luxury and sport brands.
- The charges include the complaint that one of Alibaba’s platforms hosted the sale of Gucci bag that retails for $795 if authentic for the cut-rate price of $2.
- Kering dropped a similar suit last year after reaching an agreement with Alibaba to cooperate in fighting the sale of counterfeit branded merchandise.
Dive Insight:
Chinese e-commerce juggernaut Alibaba Group Holding Ltd. said it will fight a lawsuit brought by French luxury-goods holding company Kering SA charging that it facilitates in the sale of counterfeit goods. The suit, Gucci America Inc. v. Alibaba Group Holding Ltd., was filed last week in the U.S. District Court of New York.
Chinese authorities arrested more than 59,000 people and seized 9,000 tons of fake goods in 2013. While the United States removed Alibaba from its “Notorious Markets” list the year before and it has worked with more than 40 brands to eliminate fakes from its Taobao Marketplace, allegations continue to plague the company.
