Fashion Law: Alibaba Sued for Knockoff Goods
After last week’s news that Alibaba refused the option of mediation in an ongoing dispute with Kering Group, the Chinese e-commerce giant is now being sued by multiple luxury brands for unlawful promotion of counterfeit goods. Among the top brands are Saint Laurent, Gucci and Balenciaga, to name a few, who have all collectively targeted Alibaba.
The lawsuit alleges that the company has been promoting knockoff goods, an action that has in turn negatively affected each brands’ sales and reputation.
One example cited in the lawsuit mentions a “high quality leather” tote bag on sale for $2-$5 that closely resembled that from design house Gucci who markets the same bag for $795.
This news further spurs the already ongoing global crackdown on counterfeit goods. According to estimates from the Organization for Economic Co-operations and Development, counterfeit products may be costing the global economy up to $250 billion a year.
This lawsuit is aiming for the permanent desist of counterfeit sales in addition to triple and punitive damages.