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China launches online counterfeit crackdown

China's State of Administration of Industry and Commerce (SAIC) has launched a campaign to cut the sale of counterfeit and poor quality goods online, the Wall Street Journal said.09 Jun 2015

The 'Red Shield Net Sword' campaign will run from July to November, and will focus on the responsibilities of platform operators in fighting the sale of fake goods, the Wall Street Journal said.

Local Chinese authorities should "strictly implement the legal responsibility" of platform operators, the SAIC site said, according to the Wall Street Journal.

Authorities should check on practices such as faking transaction numbers to boost credibility, and make sure that sellers operate proper return policies and make rules on promotions clear, the report said.

SAIC said that a similar campaign last year resulted in 1.33 million inspections of websites and online stores; 36,000 listings being removed; 2,201 websites being closed and 113 million yuan ($18 million) in fines, the Wall Street Journal said.

Last month luxury goods manufacturer Kering filed a lawsuit against Alibaba seeking damages and an injunction for alleged violations of trademark and racketeering laws.

In January, CNN reported that the Chinese government had released a report accusing Alibaba of turning a blind eye to illegal activity, and failing to police its online marketplaces.

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