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A prominent anticounterfeiting group has revokedAlibaba Group HoldingLtd.’s membership amid concern from global brands about the Chinese e-commerce giant’s commitment to fighting fakes.
In a letter to the group’s 250 members Friday, the AntiCounterfeiting Coalition’s board said it had decided to suspend a newly created category, under whichAlibaba was admitted in April, “in consideration of some of the concerns raised by our membership.” The board’s letter was reviewed by The Wall Street Journal.
U.S. fashion brandMichael Korsand Gucci America Inc., the latter owned by France’sKeringSA,withdrew from the Washington, D.C.-based trade group after Alibaba joined. Michael Kors wrote in a letter to the board last month that the group’s admission of Alibaba provides “cover to our most dangerous and damaging adversary.”
Brands complain that Alibaba has rolled out numerous measures over the years to tackle counterfeits, yet its shopping sites remain rife with fake goods.
Barbara Kolsun, former IACC board chair and a professor at Cardozo Law School, said Alibaba’s suspension from the group is a “prudent decision and it is unfortunate that it was made only after a revolt by members.”
An Alibaba spokeswoman said whether or not the company is a member of IACC, it plans to continue its “productive” partnerships with brands and governments to solve the “complex” counterfeiting issue. The company has said that it willspare no expense in fighting fakes.
Global brands also have raised concerns about how the anticounterfeiting group is run, citing as one example the lack of consultation with the general membership before Alibaba’s admission. The IACC board, in Friday’s letter, said that the group’s president,Bob Barchiesi,has its “full confidence and support.”
The group’s board said it will hire an independent firm to review and recommend ways to improve its internal controls.
(THE WALL STREET JOURNAL)