Alibaba has agreed to block the sale of as many as 15 illegal or dangerous toys in the U.S., the federal Consumer Product Safety Commission said on Tuesday.
The agreement is the first of its kind between the CPSC and a foreign company, CPSC Chairman Elliot Kaye said in an interview at the Hong Kong Toys and Games Fair. “We’re thrilled to cross beyond our borders and work with whomever we need to,” Kaye said.
Alibaba corporate affairs executive Jim Wilkinson said in a prepared statement that the company will work “collaboratively with the chairman and his team to do everything possible to protect consumers.”
However, the deal is only an agreement, and is not legally enforceable, Reuters reported. Under the arrangement, the CPSC will give Alibaba a list of between five and 15 children’s toys it wants to prevent from entering the U.S. market.
Around 90 percent of U.S. toy imports come from China, and Alibaba — which handles more e-commerce business than Amazon.com and eBay combined — controls about 80 percent of Chinese e-commerce.
On Tuesday, CPSC hadn’t yet approached China’s JD.com or other foreign e-commerce sites. But Kaye added: “It’s coming. If we feel like it’s a viable place to go, we’ll go there.”
Not everyone is so enthusiastic about the agreement. “Alibaba has talked about getting all the defective stuff off [its e-commerce platform Taobao], and that’s likely a claim which is way bigger than is possible to be implemented,” said James Feldkamp, CEO of China-based consumer watchdog group Mingjian.
In December, Alibaba said it has spent more than $160 million (1 billion yuan) combating counterfeit goods and improving customer protection since the start of 2013. Just a few years ago, Alibaba’s businesses were listed on the U.S. Trade Representative’s list of “notorious markets” for intellectual property infringement.
But while Feldkamp said Amazon was likely too big to be policed, he added that the agreement could help Alibaba from a publicity standpoint. “It’s saying, ‘We’re not looking to circumnavigate everywhere and flood the U.S. with a bunch of counterfeit garbage. We’re another legitimate channel for U.S. consumers,” he said.
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