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The Pinduoduo social commerce platform, whose IPO last week made Colin Huang Zheng's CEO among the richest in China, found itself in the crosshairs of Chinese regulators for complaints counterfeit products sold on the platform. The Market Regulation (SAMR) announced on Wednesday that it was calling for an investigation into the sale of counterfeit products and infringing copyright articles on the Pinduoduo platform
. Industry and Commerce (SHAIC), along with other relevant market regulators, to investigate Pinduoduo, headquartered in the city. Issues to be considered include the sale of imitation and counterfeit products.
The investigation comes after Pinduoduo issued a statement Tuesday stating that it was maliciously targeted by a series of negative press in the days that followed its publication. file a complaint with the China Internet Network Information Center, the country's media monitoring body.
A spokeswoman for Pinduoduo did not immediately respond to a request for comment.
Pinduoduo is undergoing more and more scrutiny in the United States at the beginning of last month. The company operates as an e-commerce platform that allows third-party sellers to sell items to consumers, pioneering a social group buying model that offers buyers generous discounts as they go. share the list of products with a friend. The social business model is part of the social model + often adopted by Internet companies in China, where commercial and social aspects are mixed to appeal to Chinese users, according to the China Internet Report co-authored by South China Morning Post Abacus and 500 Startups
In just three years, Pinduoduo has become China's third largest e-commerce site, with a market share of 5.2 percent, behind 58.2 percent of the total. Alibaba and JD.com. 16.3%
China's latest technology billionaire says fight against counterfeits is inevitable on the online retail market
Pinduoduo is particularly popular with users of low-tier cities and many of its products are offered at discounted prices. A large number of items are offered at less than 20 yuan (US $ 2.90) after the discount, and shipping is always free. The company has accumulated 300 million users, but the popularity and perception of Pinduoduo as e-commerce site for bargains have also led many traders to sell imitation products and shoddy on the site. Huang Zheng, chief executive and founder of Pinduoduo, said Tuesday in an interview with local media that the company was committed to fighting counterfeit goods, adding that significant resources and staff had been allocated to identify and rectify the problem. The company has already said that the way it fights fake products is similar to how Alibaba Group deals with counterfeit items on its e-commerce platforms.
Speaking to Chinese reporters, Huang pointed out that there was a difference between a counterfeit product and a product of imitation, but acknowledged that Pinduoduo has "still enough to do to attack to the problem of imitation products ". Huang said he was committed to putting in place a better mechanism to fight counterfeits within a month.
The company addressed several issues on Tuesday, including speculation that infant formula milk was sold at 7.5%. yuan per container were counterfeit. Pinduoduo said the products were sold with a generous discount because the items were close to their expiration date and the milk powder could be safely consumed.
The e-commerce site debuts, making the founder
] Pinduoduo claims to have already withdrawn more than 10 million product cards on its platform, and blocked more than 40 million listings considered to be infringing to the author's right.
The title of Pinduoduo closed on Tuesday at US $ 22.59 in New York more than 18% since its peak of US $ 27.54 on the first trading day, but still above its peak price. IPO of US $ 19 per share. In June, the Chinese parliament discussed a proposed e-commerce law that would make e-commerce platform operators and national merchants on the platforms responsible for selling fake products online.
Alibaba is the parent company of Post .
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