Counterfeit Problems: Alibaba Being Sued By Luxury Brands
The e-commerce giant Alibaba has been rumored to make a splash here in the United States, yet might be facing some pushback from some of fashion’s biggest brands.
Yves Saint Laurent, Gucci, and other luxury brands owned by Kering SA filed a lawsuit in New York last Friday against China’s e-commerce juggernaut for knowingly allowing the sale of fakes on its website. According to the South China Morning Post, Alibaba knowingly “provided the marketplace advertising and other essential services necessary for counterfeiters to sell their counterfeit products to customers in the United States.”
While an Alibaba spokeswoman claimed that the lawsuit had “no basis in law,” the newspaper claims that these luxury brands are seeking damages and an injunction to the company’s presence in the U.S.
Jack Ma, the billionaire chairman who leads Alibaba, has been hounded for years by public criticism that the e-commerce site doesn’t do enough to block sales of fakes on its websites. Its shares, which are traded publicly on the New York Stock Exchange, are reportedly down a quarter from highs reached after a world-record IPO last September. Since its debut, the company has grown more than 11 percent since May 5 after the company reported increase revenue in its latest quarter.
Will Alibaba be able to overcome its latest setback? While you ponder that, we salute the sexiest fashion spokespeople from over the past few decades.
[via Forbes]
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