Anti-counterfeit group suspends internet giant Alibaba over conflict of interest claims
Some members opposed inclusion on the ground that the firm is not doing enough to cull fakes from its online marketplaces
An anti-counterfeit group suspended the membership of Alibaba Group, one month after the Chinese internet giant joined, after questions were raised about conflicts of interest involving the coalition’s president and complaints from some members.
The International AntiCounterfeiting Coalition, a non-profit global body that fights counterfeit products and piracy, created a new membership category last month that allowed Alibaba to join. Alibaba is trying to shed its image as a haven for cheap brand knock-offs, but its inclusion in the group irked some members who say the firm isn’t doing enough to cull fakes from its online marketplaces.
The board said conflicts of interest involving president Bob Barchiesi were not communicated to directors because of “weakness in our corporate governance procedures”.
As a result of concerns raised by members, the coalition is putting on hold the new membership classification to allow “further discussion and consideration”, according to a letter from its board. Wish.com and The RealReal, two other e-commerce members under the new classification, were also suspended.
Earlier on Friday, the Associated reported that Barchiesi held Alibaba stock, had close ties with a company executive and had used family members to help run the group.