The China unit of Amazon.com Inc. has reportedly closed a third-party vendor following state media reports that it was selling counterfeit cosmetics, some of which were purportedly sourced from local grey-market wholesalers. With online shopping reportedly the preferred shopping method among Chinese consumers, increasing concerns about fake cosmetics have prompted policy makers to examine current regulatory and supervisory practices policing the industry.
According to a news source, regulations that specifically address online cosmetics sales channels are “poorly represented” in China’s overall cosmetics regulatory framework despite the country’s consumer base of nearly 300 million Internet shoppers. Amazon China says that it plans to increase scrutiny on such retailers, particularly beauty and personal care product distributors. See ChemLinked.com and ZDNet.com, March 21, 2014.