A group of luxury goods makers sued Alibaba Group Holding Ltd. on Friday, contending the Chinese online shopping giant had knowingly made it possible for counterfeiters to sell their products throughout the world.
The lawsuit was filed in Manhattan Federal Court by Gucci, Yves Saint Laurent and other brands owned by Paris-based Kering SA seeking damages and an injunction for alleged violations of trademark and racketeering laws.
The lawsuit alleged that Alibaba had conspired to manufacture, offer for sale and traffic in counterfeit products bearing their trademarks without their permission.
A spokesman for Alibaba declined to comment.
Concerns over fake products on Alibaba’s platforms, including online marketplace Taobao, have dogged it for years, although the U.S. Trade Representative removed Taobao from its list of ‘notorious markets’ in 2012 in light of progress made.
Friday’s lawsuit marked the second time in less than a year that the Kering brands had sued Alibaba over the alleged sale of counterfeit products.
The lawsuit cited, for example, an alleged fake Gucci bag offered for $2 to $5 each by a Chinese merchant to buyers seeking at least 2,000 units. The authentic Gucci bag retails for $795, the complaint said.
Alibaba has allowed for counterfeit sales to continue even when it had been expressly informed that merchants were selling fake products, the lawsuit said.
