A lawsuit has been filed against Alibaba (BABA) for selling fake goods on its platform. According to a May 17 report from the Wall Street Journal, Kering, a Paris-based luxury goods maker, sued Alibaba, the largest e-commerce player in China (MCHI), for encouraging counterfeiting on its online platforms.
Kering owns famous luxury brands such as Gucci, Yves Saint Laurent, and Puma. In the lawsuit, Kering accuses Alibaba of allowing merchants to use Taobao to sell wholesale quantities of fake Gucci products.
The allegations against Alibaba also include charges of fraud email campaigns and favouring vendors that sell counterfeit products with priority billing. The same luxury brand owner filed a similar lawsuit against Alibaba in July 2014. It withdrew this suit the same month with a mutually agreed-upon resolution plan.
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