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Alibaba Will Help Curb Export of Recalled Items Alibaba Will Help Curb Export of Recalled Items
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Alibaba, the Chinese e-commerce company, has a new partner in rooting out products deemed unsafe for American consumers, but the cooperation could also bring it more headaches.Alibaba, the Chinese e-commerce company, has a new partner in rooting out products deemed unsafe for American consumers, but the cooperation could also bring it more headaches.
The company, which listed its shares in New York in September, is teaming up with a United States government agency to prevent its online platforms from exporting items to America that have been recalled. The agreement is likely to have its largest effects on Alibaba’s business-to-business site, which sells goods produced by Chinese manufacturers to American importers and businesses.The company, which listed its shares in New York in September, is teaming up with a United States government agency to prevent its online platforms from exporting items to America that have been recalled. The agreement is likely to have its largest effects on Alibaba’s business-to-business site, which sells goods produced by Chinese manufacturers to American importers and businesses.
The agency, the Consumer Product Safety Commission, said it would provide Alibaba lists of recalled items, and in turn, Alibaba said it would ensure that those products were not for sale to companies or individuals in America. Alibaba has a small business facilitating the sale of goods to American consumers.The agency, the Consumer Product Safety Commission, said it would provide Alibaba lists of recalled items, and in turn, Alibaba said it would ensure that those products were not for sale to companies or individuals in America. Alibaba has a small business facilitating the sale of goods to American consumers.
The commission’s chairman, Elliot F. Kaye, cited the recall last year of high-powered magnets being sold as toys in the United States, noting that recently some companies on Alibaba’s sites had sold the magnets wholesale.The commission’s chairman, Elliot F. Kaye, cited the recall last year of high-powered magnets being sold as toys in the United States, noting that recently some companies on Alibaba’s sites had sold the magnets wholesale.
Mr. Kaye said the new cooperation would help ensure that listings for dangerous items like the magnets — which were recalled because of a number of instances in which children ingested them, frequently necessitating surgery — would no longer be purposely or inadvertently imported by smaller United States companies.Mr. Kaye said the new cooperation would help ensure that listings for dangerous items like the magnets — which were recalled because of a number of instances in which children ingested them, frequently necessitating surgery — would no longer be purposely or inadvertently imported by smaller United States companies.
The cooperation serves as a test for Alibaba, which despite taking steps to clean up its e-commerce sites, retains a reputation for selling just about any product — brand, fake or occasionally dangerous.The cooperation serves as a test for Alibaba, which despite taking steps to clean up its e-commerce sites, retains a reputation for selling just about any product — brand, fake or occasionally dangerous.
It is also a risk. If the company fails to live up to its end of the bargain, Mr. Kaye said the commission would not hesitate to pressure the company.It is also a risk. If the company fails to live up to its end of the bargain, Mr. Kaye said the commission would not hesitate to pressure the company.
Though Alibaba said last month that it spent about $160 million combating the sale of fake goods on its sites in 2013 and 2014, many companies complain that Alibaba can be slow to pull down listings of pirated goods. Others point out that removed listings often quickly reappear under different names.Though Alibaba said last month that it spent about $160 million combating the sale of fake goods on its sites in 2013 and 2014, many companies complain that Alibaba can be slow to pull down listings of pirated goods. Others point out that removed listings often quickly reappear under different names.
“We’re certainly going to hold their feet to the fire,” Mr. Kaye said on Tuesday at the Hong Kong Toys and Games Fair.“We’re certainly going to hold their feet to the fire,” Mr. Kaye said on Tuesday at the Hong Kong Toys and Games Fair.
Mr. Kaye said the agency would start with a list of five to 15 products at the top of the regulator’s priority list, then expand it. The commission, which first approached Alibaba about cooperation roughly two years ago, expects problematic items to be taken down in a matter of hours, he said.Mr. Kaye said the agency would start with a list of five to 15 products at the top of the regulator’s priority list, then expand it. The commission, which first approached Alibaba about cooperation roughly two years ago, expects problematic items to be taken down in a matter of hours, he said.
“We’re not a very patient lot, and if it doesn’t happen pretty quickly, then they’ll be hearing from us,” he said, adding that he hoped an automated system could be worked out.“We’re not a very patient lot, and if it doesn’t happen pretty quickly, then they’ll be hearing from us,” he said, adding that he hoped an automated system could be worked out.
The good-faith agreement raises the more complicated issue of cross-border Internet regulations. In recent years, China has pushed hard for the United States to accept the idea that Internet companies operating in different nations follow the rules and laws of their own nations. And countries like China have demanded that United States companies censor content or provide their governments with private user data to remain in compliance with their laws.The good-faith agreement raises the more complicated issue of cross-border Internet regulations. In recent years, China has pushed hard for the United States to accept the idea that Internet companies operating in different nations follow the rules and laws of their own nations. And countries like China have demanded that United States companies censor content or provide their governments with private user data to remain in compliance with their laws.
In this case, Alibaba is agreeing to respect United States laws.In this case, Alibaba is agreeing to respect United States laws.
Discussing potential concerns about setting a precedent on Internet regulation, Mr. Kaye said, “From my perspective, there’s enough known good that will result from this that if it turns out there are unfortunate side effects, we will try to work to ameliorate those.”Discussing potential concerns about setting a precedent on Internet regulation, Mr. Kaye said, “From my perspective, there’s enough known good that will result from this that if it turns out there are unfortunate side effects, we will try to work to ameliorate those.”