Chinese Shopping App Pinduoduo Rocked by Allegations despite Quick Rise in the Financial Market

Information may not be reliable

(July 26, 2018) - 2017 saw the rise of Pinduoduo, the Chinese shopping app that has drawn around 350 million people. As per the company, this makes Pinduoduo one of the most famous e-commerce service providers in China, right after the online store Alibaba.

Part of its success story can be attributed to the high discounts that it offers to online shoppers on knick knacks, gadgets, clothes and grocery items.

While Pinduoduo has a big reason to smile, it also has reasons to worry. It is often in the news for violating business rules, such as copyright problems or allegations of counterfeit products. An increasing number of violent products, sex products and fake goods are more frequent on Pinduoduo, which makes customers under-confident.

A number of companies are frequenting the office of this Chinese shopping app for demonstration, which shows that the business model of Pinduoduo is not completely a fairytale growth story. Allegations and charges of temptation, false information and low price to attract customers are ruining the business image of Pinduoduo.

About Chinese Shopping App Pinduoduo:
Pinduoduo has made it clear in the documents it filed with the SEC (United States Securities and Exchange Commission) that it takes steps to instantly remove misleading details or unauthorized products found on its website. It also freezes the trading accounts of merchants breaking its policies. However, in the regulatory filings in January 2018, its makers also said that the Chinese authorities need to make supervision stronger and show more effective responses to copyright infringement claims.

For more details and further enquiries, please visit https://www.nytimes.com/2018/07/20/technology/pinduoduo-china-shopping-nasdaq-ipo.html

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