Amazon China clamps down on fraud

E-commerce giant Amazon has closed a third party store in China over the fraudulent sale of cosmetics products.

The move comes on the heels of a China Central Television report about Amazon’s and Dangdang’s third party merchants reselling fake cosmetics, some sourced from grey market wholesalers.

“We will strengthen the process of scrutiny and regulation of our sellers,” Amazon said on China’s Twitter-like Sina Weibo.

Dangdang also closed the accused third party stores and promised to refund customers.

Counterfeiting has been a a long-standing problem of many e-commerce companies in China. Alibaba has stepped up its battle against counterfeiters by signing an agreement with Washington DC-based non-profit organisation International AntiCounterfeiting Coalition (IACC) to address sales of counterfeit goods online.

Together with 20 other Internet companies including Tencent Holdings and search provider Baidu, Alibaba also vowed to share information and cooperate to fight online fraud under the guidance of China’s Ministry of Public Security.

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