April 18, 2015: Chinese government price bureau fined e-commerce giant Ali Baba Group with $129,000 for price violation in eastern Zhejiang by third-party sellers during special day celebrations on its website.
The November 11 'Singles Day', which is a Chinese response to valentine's day, the group turned this day into a online shopping festival in 2009.
The approximate sale of $9 billion was achieved in last year's event, and the company has copyrighted the phrase 'Double 11', an obvious reference to the date(11-11), which was also in turn, refers to the status of single people.
Ali Baba Group in a statement explains about why they have been fined: "The company has been fined 500,000 ($81,000) for matters related to Single's Day pricing by third-party sellers on our Tmall marketplace in 2013 and 2014 and 300,000 ($48,000) for pricing in other promotions in 2013 and 2015."
The pricing of the promotions on their website is handled by third-party sellers, since the group learned the lesson in a hard way aims to reinforce pricing rules and regulations with sellers to protect consumers.
The market value of company measured in 2014 as $231 billion has grown considerably in last few years in e-commerce space in China. The company recently acquired a $590m minority stake in the Chinese smartphone maker meizu.
Source: Reuters.com
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