According to the Chinese magazine IT Times Weekly, Taobao.com, Alibaba’s C2C platform, is plagued by corruption.

The report notes that Taobao’s staff in charge of opening and closing online stores; began accepting bribes from online retailers in order to help drive up sales on their online stores.  It is also claimed that Taobao’s credit system is manipulated by company employees in exchange for bribes.  The aim is to help retailers obtain sufficient credit to attract more consumers.

On March 6, 2012, Yan Limin, the CEO of Juhuasuan.com, a group buying site owned by Taobao.com, was fired due to the management team’s failure to uncover the corruption that had taken root within the company.

Source: Brightwire