Alibaba can implement several strategies to combat the issue of counterfeit products. First, they can enhance their verification process for sellers to ensure only legitimate businesses are allowed to sell on their platform. Second, they can invest in advanced technology to detect and remove counterfeit listings. Third, they can strengthen their cooperation with brands and authorities to take legal action against counterfeiters. Lastly, they can educate consumers about the dangers of counterfeit products and how to identify them.
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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.