Taobao Seller Under Investigation by Beijing E-Commerce Regulations

A seller on Alibaba Group's consumer-focused e-commerce site Taobao.com is under investigation after the Beijing Administration for Industry and Commerce's (BAIC) Haidian Division found it to be selling fake products from 10 luxury brands including Louis Vuitton, Gucci and dunhill last weekend, reports Beijing Business Today. The online store's prices ranged from dozens to hundreds of yuan, while the real products' prices are in the thousands or tens of thousands, said the report. Taobao closed the store after receiving notification, said the report. BAIC said in 2008 that it planned to prioritize online licensing and cleaning up knock-offs in 2009, the report said.

Governments in areas including Shandong have adopted Taobao.com's consumer protection measures, including a "seven day reason-free return period," into law to regulate online purchases, reports enorth.com.cn. Taobao launched a customer protection program for its online payment tool Alipay on March 8, 2007 and released three opt-in regulations to protect purchasers on March 11, 2008.

Taobao has partnered with local industry and commerce departments nationwide to conduct an online and offline campaign against fake goods and will permanently ban sellers found to trade in them, reports Chongqing Times.