Pinduoduo Cracks Down on Counterfeit Sellers: Updates Rules and Vows to Sacrifice Short-Term Profits for Long-Term Health

Pinduoduo, the massive Chinese online retailer, has revised its policies to remove vendors selling inferior products. An executive from PDD stated in a recent earnings discussion that the firm is prepared to forgo immediate gains for the sake of its long-term wellbeing.

Pinduoduo, a Chinese e-commerce platform, will begin to exclude vendors who sell fake goods from its multi-billion yuan subsidy program. This move comes as PDD Holdings, the operator of Temu, and other major competitors adjust their operations in line with Beijing's call to counter overwork.

On Monday, Pinduoduo revamped its guidelines for sellers participating in its discount program. The changes included strict penalties like permanent expulsions for vendors selling counterfeit or low-quality items, as reported by Beijing Business Today, a Chinese media outlet.

The implementation of the new regulation is anticipated to commence the coming Tuesday.

Pinduoduo has not yet responded to a request for comment made on Tuesday.

Pinduoduo launched its multibillion-yuan subsidy initiative in the middle of 2019, a strategy that has assisted the newcomer in establishing its presence in China’s smaller municipalities, where buyers are generally more conscious of prices.