Alibaba Sues Company Faking Online Credit, Asks for Compensation of USD313,000



(Yicai Global) Dec. 6 -- E-commerce giant Alibaba Group Holding Ltd. [NYSE:BABA] has filed suit against Hangzhou Jianshi Network Technology Co. for faking online credit, asking for compensation of CNY2.16 million (USD 313,000)., operated by Hangzhou Jianshi Network Technology, uses network technologies to fabricate credit information for merchants, or users of e-commerce websites, which has disrupted the level playing field in the e-commerce sector.

The defendant company was punished by the Market Supervision Bureau of Hangzhou in accordance with the laws in April. However, it was fined just CNY100,000, which was very small compared to their illegal proceeds and was not large enough to produce a deterrent effect.

Alibaba said that if it wins the case, all the damages will be used to set up an anti-fake order fund to report and investigate those faking credit.