Taobao refutes fake goods claim by China watchdog

January 28, 2015 11:32
Taobao says the government sampling size was too small to support the conclusion that 62.75 percent of goods sold on Taobao are fake. Photo: Bloomberg, the e-commerce platform of Alibaba Group Holding Ltd., is denying its online store is flooded with fake goods.

It used a social media post by a vendor to question the sampling size used by China's industry and commerce watchdog ín arriving at the conclusion, the Hong Kong Economic Journal reported Wednesday.

The vendor said the sampling size was too small to reflect the reality.

On Friday, the State Administration for Industry and Commerce criticized Taobao after concluding that about 62.75 percent of goods sold on the platform were fake.

The findings followed inspections during the second half last year, it said.

However, the Taobao vendor said only 51 products were tested, out of more than one billion items that move on the website on an average day.

Alibaba has spent US$160.7 million in the past two years to crack down on fake goods and enhance consumer protection, the report said, citing Alibaba chief risk officer Shao Xiaofeng.

The initiative included deploying an additional 2,000 workers.

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Freelance journalist