A Gucci bag for $2? A Gucci watch for 20 cents? Turns out, these prices are too good to be true.
Alibaba, the world's largest e-commerce company, is making enemies in the fashion industry by not adequately policing the sale of counterfeit goods on its website. Last week, Gucci, Yves Saint Laurent and other luxury brands filed a lawsuit against Alibaba Group Holding, alleging that “the online shopping giant had knowingly made it possible for counterfeiters to sell their products,” Forbes reports.
Alibaba denies any wrongdoing, and its founder Jack Ma said: “We express regret about the company's choice to sue us and not to cooperate with us to fight against counterfeit goods,” the Associated Press reports. It’s still unclear if and how this lawsuit will affect investor and consumer confidence.
This is a good reminder that fraud is prevalent on the secondary market. Whether you’re buying or selling goods, make sure the necessary licenses are in order.