CEO DATELINE - Anticounterfeiting coalition suspends Chinese retailer's membership after outcry
CEO DATELINE - Anticounterfeiting coalition suspends Chinese retailer's membership after outcry
- May 16, 2016 |
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Walt Williams
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A coalition formed to combat counterfeiting has suspended the membership of the Chinese online retailer Alibaba after at least three members dropped out of the group in protest of allowing the company to join in the first place.
Alibaba has long been criticized by U.S. businesses for selling counterfeit goods through its online outlets. So when the Washington, D.C.-based International AntiCounterfeiting Coalition recently announced it had created a new membership category to allow the retailer to join its ranks, two fashion brands—Michael Kors Holdings and Gucci America—dropped out. Jeweler Tiffany & Co. also has left the coalition but did not say why.
In a May 13 open letter, IACC's board of directors announced it was suspending its general membership category through which Alibaba joined the coalition. The decision affects not only Alibaba, but the online stores Wish.com and The RealReal.
The board also used the opportunity to defend IACC President Bob Barchiesi, who has been accused of not disclosing his stock ownership in Alibaba, had close ties to an Alibaba executive, and had used family members to help run the coalition, the U.K. newspaper The Guardian reported. http://bit.ly/1TVziE2
The board said that while Barchiesi had disclosed such potential conflicts of interest on the coalition's tax forms, weaknesses in the organization's corporate governance structure meant those conflicts were not always communicated to board members. Despite that, the board said the president has its full confidence.
"We are hiring an independent firm to review, develop and recommend the implementation of corporate governance measures, internal controls, policies, procedures and by-laws to ensure that they meet the highest standards and fit the current size and scope of our organization," the board said.
As for the membership suspension, the board said the decision would not affect the coalition's existing relationships or joint initiatives with Alibaba and the other two companies. Alibaba founder Jack Ma is scheduled to speak at the coalition's annual conference in Orlando May 19. http://bit.ly/27rEeb2
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