Alibaba may face trouble in US as fakes abound

Alibaba Group Holding Ltd risks being blacklisted in the United Stated after a clothing trade group filed a complaint against the company alleging that the e-commerce giant has tolerated the sale of counterfeit and pirated goods on its Taobao platform.

The American Apparel and Footwear Association has asked the Office of the US Trade Representative and the Securities and Exchange Commission to add Taobao to the Notorious Market list, an official report that identifies Internet marketplaces dealing in infringing goods.

The USTR removed Alibaba from the blacklist in 2012. But the AAFA said that the addition of Taobao in this year's list could put pressure on the company to take more effective measures to tackle fakes on its websites.