China Strengthens Crackdown of Counterfeits as Number of Fake or Low Quality Products Sold Online in 2014 Reaches 40 Percent
State-run news outlet Xinhua is reporting that 42.3 percent of products sold online in China last year were either fake or substandard, according to China's National People's Congress (NPC).
China's NPC revealed that only 58.7 percent of goods sold online met quality standards or were verified as genuine.
"Ignoring consumers' rights and selling counterfeits are very prominent in the online shopping industry," said NPC Standing Committee vice chairperson Yan Junqi.
A report by the NPC Standing Committee with regard to Chinese Consumer Protection Law showed that online shopping-related complaints quadrupled in the year 2014. The number of cases reached 77,800, which is equivalent to 92.3 percent of the total complaints filed under the said law. The 2014 figure shows a 356.6 percent rise from 2013.
The Guardian noted Nov. 3 China has been trying to make significant improvement to the country's counterfeiting problem.
The Chinese government has reportedly set a three-year target period to eliminate the problem, Securing Industry wrote Sunday. A number of industrial categories will be made the subject of possible regulatory reforms, including food and drugs, cosmetics, agricultural products, electronic products and automotive parts.
In order the monitor the marketplace, the government also revealed its plan to employ various technology such as cloud-computing and Internet of things.
The New York Times reported Thursday that China's State Administration for Industry and Commerce is carrying out a one-year "crackdown on infringement of Disney's registered trademarks," starting by filing a notice against producers and sellers of fake Snow White dolls and "Frozen" backpacks.
The State Administration for Industry and Commerce said its goal is to "safeguard the legitimate rights and interests of consumers, promote a market environment of fair competition and uphold China's international image in protecting intellectual property rights."
Foreign companies have taken notice of China's progress in cracking down counterfeits. A survey by the American Chamber of Commerce in China together with Bain & Company found that 85 percent of respondents believed China's enforcement of intellectual property rights law has improved in the last five years.
Stephen Shih, a partner at Bain & Company's China office, said the country's problem with fakes is "an ongoing concern for companies, but the trajectory is positive."