CASE STUDY 3 PINDUODUO

Answers all questions:

1. What is the main offence done by the e-commerce site (Pinduoduo)? Give ONE
example from the article.

Pinduoduo has faced a flood of media reports in China since its initial public offering
(IPO) in New York claiming that the platform has been actively selling low-price knock-
offs with a high resemblance to brand names of well-known products.

Pinduoduo into its sale of counterfeit products and items that infringe copyright.

2. What is the effect of the offence done by the e-commerce site (Pinduoduo)? Or how
does the offence affect others?

Pinduoduo has been selling fakes and knock-offs over the platform resulted in share
tumbles.

Law Offices of Howard G. Smith said on its website that it believes Pinduoduo and
certain executives violated federal law, which specifically misled investors regarding its
financial condition.

3. How does this matter is being handled?

Looking to file class-action lawsuits on behalf of individual investors who bought Pinduoduo
shares.

Pinduoduo and certain executives violated federal law, which specifically misled investors
regarding its financial condition.

Investigating concerns whether Pinduoduo and its officers and/or directors have engaged in
securities fraud or other unlawful business practices.

The company will investigate the legal liability of responsible persons, including both
producers and sellers.

China's top market watchdog, the State Administration for Market Regulation, announced
last week that it is initiating an investigation on Pinduoduo into its sale of counterfeit
products and items that infringe copyright.

4. Why do you think Pinduoduo is popular among consumers?

Pinduoduo is a popular among consumers because of their offering of low price for high
value product.

A number of diaper products branded like "Pampois" and "Parmepas" were sold on
Pinduoduo and received warm responses from consumers due to low prices.

5. What is your opinion in this case? Do you think it is ethical to do business like
Pinduoduo, why do you say so?

In my opinion it is not ethical to do business like pinduoduo because some of factors:

1-against the law

2-wrong courses of action
3-never applied laws correctly