China's market regulators decided Wednesday to investigate online group discounter Pinduoduo for alleged counterfeit products.
Many consumers and trademark holders have recently complained that the shopping app by Pinduoduo Inc. is selling counterfeits and replicas of brand products.
The State Administration for Market Regulation (SAMR) has required the market regulators in Shanghai to look into the problems reported.
Any illegal operations on a third-party platform and the companies doing business via it will be punished according to law, the SAMR said.
Founded in 2015, Shanghai-based Pinduoduo is a third-party e-commerce platform with over 300 million active users. It sells discounted products by incorporating social networking into online shopping. The company debuted on the Nasdaq stock exchange on July 26.