Pinduoduo removes 4.3 million listings in crackdown on fake goods after stock takes a hammering
Shanghai-based company takes steps to address concerns about counterfeit goods sold on its e-commerce platform
Pinduoduo is making good on the promise it made to investors and consumers to strengthen its measures against knock-offs, after its stock price took a hammering following a spate of negative press calling the company out for inferior and imitation products.
On Wednesday, Pinduoduo issued an open letter about the steps it had taken to prevent the sale of fake goods. In the week spanning August 2 to 9, the company said it shut down 1,128 stores, took down 4.3 million listings, as well as blocked 450,000 suspected counterfeit good listings from going up on the platform.
The company also said that it will redirect users who search for counterfeit brand names to the legitimate listings, and has set up an email channel to allow consumers and brands to report any suspicious listings.
“We have reflected on this painful lesson and learned from it,” according to its statement. “Pinduoduo will fix our shortcomings and fill the loopholes … to solve the problems one by one and change for the better by using consumer interests as the starting point”.
The open letter comes as the Shanghai-based company faces regulatory scrutiny and a backlash from consumers and brands for allowing knock-off and poor-quality products on its platform soon after it went public.