Dec 26, 2018 (China Knowledge) - Pinduoduo <PDD:NASDAQ>, one of China’s largest and fastest growing e-commerce platform, has been a victim of criticisms by media and general public regarding the presence of counterfeit products on its platform. This has not only affected the company’s share price, below its IPO price since its listing in July, earlier in August; but have prompted it to take measures to discourage counterfeits on its platform.
The company has announced new policy to address the issue of counterfeits and the protect consumers’ rights, on Monday. A staff from Pinduoduo confirmed that the company will pushing forward with the new policy.
The company has carried out multiple exercises to address the issue of fake goods, in August 1128 retailers were asked to close down, and more than 430,000 listings removed.
Through the new policy, Pinduoduo plans to evaluate sellers through business operation appraisals, comments from users, and credit information from government sources. The new policy will be implemented from January 1st 2019.
Untrustworthy storeowners will be blacklisted by the company and will be reported to market regulation authorities. Merchants with bad evaluation will be put on a closer watch, with their products downgraded in search results or banned.
This new policy targeting on quality and counterfeit issues will help strengthen investors’ confidence in the company’s shares. Shares price of the company has previously fallen to its lowest at USD 16.53 apiece.
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