A report carried out by a China Central Television station highlighted that online e-commerce retailer China DangDang was selling a wide range of mainly luxury cosmetic products that could not be proven as genuine.
According to the report, when company executives were asked for certificates of authenticity for the ranges it was selling, no such certificates could be provided.
Attempts to stamp out the fake problem
Subsequently Bloomberg reporters also took up on the allegations, but stated that they had no response from the company after three emails and a phone call to try and determine product authenticity went unanswered.
As the largest e-commerce retailer in the world and one of the biggest players in the China market, Amazon says it has been doing all it can to stamp out the sale of illegal gray market or fake products by its third party vendors.
Following the report, Amazon China verified that there had been a number of customer complaints about China DangDang’s practices, and that the company will immediately close any stores selling fake cosmetics.
China market for fake products continues to thrive
Both Amazon China and its rival Alibaba have been taking an increasingly hard line on third party retailers selling fake products of late, which has contributed to a country-wide campaign that, according to China authorities, resulted in more than 9,000 tons of products being seized in 2013.
However, the illegal trade of fake products is still practiced openly in many markets across some of China’s biggest cities, including the renowned Silk Market in Beijing.
Trading in fake cosmetic and fragrances has traditionally focused on luxury international brands, with some of the top brands in both the L’Oréal and Estée Lauder portfolios being amongst the most targeted.