The lawsuit filed by Kering against Alibaba for trademark infringement and counterfeiting had a significant impact on Alibaba's business operations. It brought to light the issue of counterfeit products on Alibaba's marketplaces, which had been a concern for various stakeholders, including China's regulatory authority and the American Apparel and Footwear Association. This led to increased scrutiny and criticism of Alibaba, which in turn may have forced the company to take more stringent measures to combat the sale of counterfeit products on its platforms. This could have involved additional resources and changes in their operations and policies.
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Another issue that is plaguing Alibaba's Chinese marketplaces, "Forbes" reports, is the massive presence of counterfeit products. A few years back, the company had come under criticism from China's regulatory authority State Administration for Industry and Commerce (SAIC) for not doing enough to stop illegal activities on its Taobao marketplace. Also, the American Apparel and Footwear Association had concerns pertaining to the sale of counterfeit products on Alibaba's C2C marketplace. In May 2015, Kering, which owns luxury brands Gucci and Saint Laurent filed a lawsuit against Alibaba on charges of trademark infringement and counterfeiting.