May 17, 2016

Alibaba Suspended From Anticounterfeiting Group
Move follows backlash after AntiCounterfeiting Coalition admitted the Chinese e-commerce giant in April

By Kathy Chu
The Wall Street Journal

May 13, 2016, A prominent anticounterfeiting group has revoked Alibaba Group Holding Ltd’s membership amid concern from global brands about the Chinese e-commerce giant’s commitment to fighting fakes.

In a letter to the group’s 250 members Friday, the AntiCounterfeiting Coalition’s board said it had decided to suspend a newly created category, under which Alibaba was admitted in April, “in consideration of some of the concerns raised by our membership.” The board’s letter was reviewed by The Wall Street Journal.

U.S. fashion brand Michael Kors and Gucci America Inc., the latter owned by France’s Kering SA, withdrew from the Washington, D.C.-based trade group after Alibaba joined. Michael Kors wrote in a letter to the board last month that the group’s admission of Alibaba provides “cover to our most dangerous and damaging adversary.”

Read more in the Wall Street Journal. 

Barbara Kolsun, former IACC board chair and a professor at Cardozo Law School, said Alibaba’s suspension from the group is a “prudent decision and it is unfortunate that it was made only after a revolt by members.”