Last month CEO and Founder of Alibaba Jack Ma circulated a Tweet in which he urged Chinese government to take hard on counterfeiters.
What happened today? The CEO of Chinese famous online marketplace Alibaba, has been sued and taken to the court for allegedly allowing counterfeiters to sell fake fire extinguishing balls. This was the case Jack Ma was fearing earlier and now it’s on his head.
Apart from huge sales all over the world, “fake products in China” is still a monster for Chinese exports. People still fear buying products from China because of replica, fake products. According to the organization for Economic Cooperation and Development, the country is the largest exporter of fake goods all over the world. Over 60 percent of fake goods are linked backed to China. The organization also blamed Alibaba to be one of the biggest facilitator of fake goods, but Jack Ma refused this allegation and told media that they are also the victim of counterfeits.
Elide Fire Ball Pro, is the company behind this case, Thailand based manufacturer and vendor of patent Elide Fire Ball. On Alibaba and Aliexpress the product is being sold under the name of AFO Elide Fire Extinguisher Fire ball.
The original manufacturer claims that this product does not really extinguishes fire in the first place, which is continuously damaging the reputation of the company. They have estimated the damages of almost 3 billion baht which is nearly $86 million.
image via: reuters