Alibaba’s new plan to fight viral counterfeits

The company has introduced a digital tag to help consumers verify products, in partnership with Israeli startup Visualead.

The tags, called a “dotless visual code,” are designed to embed a colorful image or logo that users can scan with Alibaba (BABA, Tech30)’s mobile apps to get more information about the product, such as its origin, confirmation of authenticity, and any promotions, according to Alibaba.

The company aims to attach a unique code for each of the billions of products sold on its platforms.

Manufacturers can also track how many times, and from where, the codes were scanned. If a counterfeiter has tried to duplicate a unique code, “the original product manufacturer will be able to swiftly identify the approximate location of the counterfeiter and take the necessary action,” said an Alibaba spokesperson.

Brands such as L’Oreal and Ferrero have already created millions of such codes for their products sold in China, according to Visualead.

Alibaba has long battled counterfeits on its Taobao and Tmall shopping sites.

“Counterfeits, in my opinion, are like a virus in business activities — it will take time to entirely cure it,” co-founder Jack Ma told reporters in Korea.