Alibaba Fair Play Fund: Proactive Efforts

Below are some pretty useful links about Alibaba's approach to trust and safety on their platform, what you can do to protect yourself, under what circumstances then ban members, and how to use the Alibaba Fair Play Fund.

I've bookmarked this page and you might want to as well.

• Alibaba.com’s Safety and Security Center homepage
• Measures that Alibaba.com has in place to ensure the safety and integrity of its platform for users
• Statement on Alibaba.com’s policy for banning members, whether paid or free, if they have engaged in activities that undermine the integrity and safety of the online business community
• Cumulative list of Gold Suppliers (paid members) that have been banned due to a violation of company policy such as engaging in fraudulent activity or repeated IPR infringement
• Where to report online security issues

And here is a list of user-generated content;  information that comes mainly from users (except for the information about the Fair Play Fund) that is user-to-user communication on how to be successful and avoid frauds and scams.

1. Safe Trading Basics Forum - users can share tips on self-protection while doing business online.
2. Find Reliable Partners Forum - users share and solicit insight on prospective business partners they have encountered on Alibaba.com.
3. Report & Verify Fraud Forum - users notify other members about suspicious activity and raise awareness about potentially bad business partners.
4. Alibaba Fair Play Fund - how and when to seek compensation via the Alibaba Fair Play Fund.

Avoiding Use of the Alibaba Fair Play Fund: Prevention

An ounce of prevention is worth a pound of cure.  Buying and selling online is complex, especially when you take into account different cultures, languages and time zones.

Alibaba.com offers a lot of advice (that is scattered all over their web site), so from time to time, I'll offer some information that appears in different parts of the site.

Advice on how to prevent fraud
on Alibaba.com

And just to be clear:  use of the Alibaba Fair Play Fund should be a last resort.  Doing your homework, knowing your suppliers and having a true understanding about how the process works are your best protection against suffering from fraud or scams.

So here's a case study on fraudsters who provide false information.  I have taken this from the Alibaba Fraud Case study web site section.

Case Description: 

"I didn't receive the products. The supplier said the goods were detained in the Customs Office because Customs didn't find the original invoice attached to the goods. The supplier explained that it's his company's policy was to issue original invoices only when quantities are above 5 units. He told me to pay for another 2 units for another $150 USD, but I have refused. I paid by Western Union. He registered on your website as a US company, but actually it is a Chinese Company. All his information is fraudulent. His is a fraudulent company!"

Case Analysis:

1. It is a sign of potential fraud if the seller requests you to send payment to another country instead of his registered country showed on the website. e.g., the company claims to be a UK company and requests you to send payment to Nigeria, or other African countries. 

2. If you think their price is very attractive and want to deal with them, it is necessary for you to verify that they are legitimate company and their contact information is correct. In this case, the fraudster is pretending to be a US company, but all his registered information is false. This can be judged easily by calling his company telephone number or by searching the company name on related state government websites. 

3. The fraudulent company will always find some excuses, such as their products are detained by Customs Office for some reasons, and ask buyer add more payment to release the products. Be cautious and make your own decision when your seller tells you such things. 

4. Western Union is a dangerous payment method, it can be picked up anywhere in the recipient's country, with no way of tracing the person who picked it up. The criminal remains anonymous. So it is a commonly used payment method for con-artists. So try to avoid adopting this payment method and consider other more secure payment methods like escrow. 

FAQ About the Alibaba Fair Play Fund

FAQ Regarding Alibaba's Fraud and Dispute Procedure and the Fair Play Fund

Here's a good "how to" for report fraud and make a complaint to the Alibaba Fair Play Fund.

How do I report a fraud case?

1. Go to http://channel.alibaba.com/complaint/home.htm
2. Sign in with your registered Alibaba.com email and password
3. Complete the necessary information and submit

If you do not have an Alibaba.com account yet, please click here to register with the email address you used to contact the party you wish to complain about.

You can view updates or provide further information after successfully submitting your complaint on our Complaint Center.

Case handling procedure: 
1. Collect evidence from the buyer.
Depending on case type, different evidence may be required such as below:
a) Payment document (bank slip, etc.)
i.   Payment via bank transfer (T/T): Must have bank stamp/chop
ii.  Payment via Western Union: Must include MTCN
iii. Payment via online banking: Screenshot of the entire transaction page. Must include URL and payment status
iv.  Complete correspondence between both parties
b) Delivery documents
c) Contract or Proforma Invoice
d) Third-party inspection documents
e) Photos of products received including delivery package

2. Case substantiated.
a) Alibaba.com will request the supplier to submit evidence to counter the complaint within 2-3 working days.

3. Solution.
a) If we consider the complaint to be a normal trade dispute, we will inform supplier of the dispute and ask them to contact you within 3-5 days.
b) If we consider the complaint to be valid (the supplier is suspected of fraudulent activities), we will suspend the supplier's account for 15 days.
c) If the complaint is not resolved within the suspension period; the supplier's account will be terminated and blacklisted. Buyers who filed complaints resulting in the removal of a Gold Supplier from Alibaba.com will be eligible for a payout from our Fair Play Fund.

Another Way to Avoid Fraud: Use the Alibaba Factory Audit Service

I've said it a lot before, but there is so much good information on Alibaba.com on how to prepare yourself on how to avoid scams and fraud - and not end up using the Alibaba Fair Play Fund - that it sometimes gets lost in the clutter. I found an awesome graphic that shows how to find Alibaba Factory Audited Suppliers.  Check it out below: All Factory Audited Gold Suppliers have Factory Audit displayed on Alibaba.com. These logos are displayed in 3 areas online:

	Search results listing

	Product details page

	Company Website

Factory Audited Gold Suppliers can also be found by using the filter function on all search results listing pages. Simply choose 'Search Factory Audited Gold Suppliers' from the drop-down menu.

Alibaba.com User Advice on How to Avoid Fraud

Avoid scams and fraud
on Alibaba.com

Some of the best advice for how to avoid fraud and scams - and not have to file a claim under the Alibaba Fair Play Fund - comes from suppliers themselves. I have re-posted some solid advice from an Alibaba user, but without his permission, had omitted his name and contact information. You can certainly go to the Alibaba Safe Trading Forums if you'd like to look this up. Anyway, solid points from an Alibaba user:

First of all, I do Google search with the name of the company and the word scam. Normally, there should be no page with the company listed with the word scam next to them but if you see at least one, maybe it is a scam. No need to have several pages, only one is neccessary. :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
Secondly, I go on a very good website, www.fraudwatchers.org who have a lsit of all website and company listed as scam. They just saved me from sending sample to a scam company. :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
And thirdly, just ask people around on forums just like this one. I saw a mate who've done that. :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
Fourth steps is that you can verify the address they gave you and find out what's really on this. Go on www.whitepages.com and enter the address they gave you to find out if the address is really registered as their business address or at least at their names. ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: Fifth test is to ask them to phone you. Normally scammers won't do this but beware, some also tries to call you. Please be aware that some scammers uses call redirection which is call callback (I'm not sure of that) or they can use fax to email. Using this, they get number that are listed in U.S.A., U.K. or any European country where in reality, they are located elsewhere. :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
Sixth, alway inquire about the mail address. This is a mistake scammers often made. Try to see whether the email address comes from a free mail server. Suppose you get a mail from economicdevelopment@mail2cameroon.cc, be sure this is a scam. The mail address (it truely exist and they tried to scam me) is not from the Cameroon government, but from a free mail server. This is how I caught my first scammer. ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: Seventh and last advice for the time being; JUST COME AND ASK ME. Yes, you can come and ask me and I'll help you. I've been for so much time victim of scammer, who fortunately failed in their attempts, that I've got some pretty much experience.

Good stuff.

Video: Alibaba.com - How to be Successful

The main focus of this blog has been to make the best use you can from Alibaba.com, but mainly to avoid fraud and scams on the part of suppliers so you DON'T have to use the Alibaba Fair Play Fund. But let's be positive today. I found a video on Alizila.com that offers business tips on how to be successful on Alibaba.

Video is below.

Trade Dispute Procedures for the Alibaba.com Website

 (Updated Nov 11, 2010)

Another helpful nugget that I dug up on Alibaba.com.  I especially like the fact that the have provided a graph that takes people through how the process works.  You can read this here as well.

Based on the principles of good faith and safe transactions, Alibaba.com has always committed itself to providing a safe-trading environment for buyers and suppliers. If a trade dispute arises with another party, please follow the following procedures to settle the matter. Alibaba.com will always do its utmost to aid you in your dispute. However, please be aware that all information on the other party's company/products posted on the Alibaba.com website is confirmed and published by them. They are solely responsible for the truthfulness, accuracy, completeness, and legality of such information. Alibaba.com does not represent Seller or Buyer in any transaction between users of the website, and is unable to make any judgment as to the performance of users in transactions. Therefore, these procedures only allow users to lodge their complaints. Alibaba.com neither guarantees nor undertakes that any dispute will be settled or that the results of the settlement will be appropriate.
If your complaint is related to your intellectual property rights, please refer to our Intellectual Property Protection Policy and Infringement Claims.

If your complaint is related to an online transaction processed on the www.AliExpress.com transaction platform, please submit your complaint or refund request directly through the transaction platform.

  I. Trade Dispute Procedures If complaints are repeatedly received about a member and such member is found in breach of the Terms of Use of our website, Alibaba.com will take appropriate measures, including the issuing a warning; suspending their Product Listings; or terminating their service.

If you would like to report dispute now, please click here.

If you would like to learn how to submit qualified evidence, please click here.

Click here to download the Counter Notification - Trade Dispute Form

II. Alibaba.com's Suggestions
We suggest that you contact the other party as soon as possible to help resolve the dispute. Many disputes can often be resolved after direct communication between the 2 parties. If you do not receive responses from the other party after attempting to contact them, you may also try to find out their telephone number to contact them by phone. If our dispute procedures do not meet your requirements, you may also protect your rights and interests using the following means:

Lodge legal proceedings with a court of competent jurisdiction Report your complaint to the relevant public security authority/police force If a written arbitration agreement has been reached between you and the other party before or after the dispute arises, the parties may refer the dispute to the relevant arbitration commission for arbitration.