A group of China’s largest Internet companies have joined to form an e-commerce protection framework to counter online fraud under the guidance of China’s Ministry of Public Security. The group of 18 companies includes industry giants Alibaba Group, Baidu and Tencent Holdings among others.
According to the China Electric Commerce Association, Chinese online shoppers were defrauded of approximately US$5 billion in the 12-month period up to June 2012. The participating companies are looking to tackle online scams that include fake ads, selling of pirated goods and non-delivery of goods by fraudulent vendors in China.
Media reports quoted recent research data stating that total online sales in China are expected to reach US$356.1 billion in 2016, up from US$169.4 billion recorded in 2012. The Alibaba Group alone reportedly allocates up to 2,000 employees to monitor online security.
Source: Business Strategies Group Hong Hong – www.bsgasia.com