Alibaba Group Holding Ltd (NYSE:BABA) is one of the biggest global retailers with more transactions than both Amazon.com, Inc. (NASDAQ:AMZN) and eBay Inc (NASDAQ:EBAY) combined. The ecommerce giant has signed a deal with the U.S. consumer watchdog, the U.S. Consumer Product Safety Commission (CPSC), to block the sales of dangerous toys in the U.S.
What is surprising is the fact that this is the first time when CPSC has signed such a deal with a foreign company. Elliot Kaye, chairman of CPSC, said that the commission is thrilled to expand its horizon and it is willing to work with anyone to ensure consumer safety. As of now, the U.S. imports up to 90 percent of its toys from China and the CPSC plans to give a list of up to 15 toys that the online retailer must block from entering the U.S.
Jim Wilkinson, Alibaba Group Holding Ltd (NYSE:BABA)’s corporate affairs executive, said that the company is ready to comply with the standards of CPSC and it is ready to do everything that protects its consumers. Alibaba is the only group to receive such an offering from the CPSC and when asked about contacting other toy manufacturers, Kaye said that it will do so if necessary.
However, the market is opined that the size of Alibaba Group Holding Ltd (NYSE:BABA) makes it difficult to police its transactions. James Feldkamp, Mingjian CEO, consumer watchdog group in China, said,
“Alibaba has talked about getting all the defective stuff off (e-commerce platform) Taobao and that’s likely a claim which is way bigger than is possible to be implemented.”
Government authorities are not the only ones to contact Alibaba over its listed items. Alibaba Group Holding Ltd (NYSE:BABA) signed an agreement with the tech giant, Microsoft Corporation (NASDAQ:MSFT), to prevent the sale of counterfeit software on its ecommerce platforms including Tmall and Taobao platforms.
This article has been written by Prakash Pandey.
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