Pinduoduo’s successful listing on NASDAQ this July was overshadowed by the accusation of its selling and promoting fake products, which resulted in a share price plummet and subsequent lawsuits filed by investors who had suffered financial losses. However, the new scoring system for merchants, evaluating through business operations appraisals, comments from users, and credit information from government sources, will go into effect on 1st, Jan. The new policy is believed to greatly curb counterfeit products to be sold on the platform by the increased oversight and sanctions – discredited merchants would be fined up to 10 times the historical sales revenue from a problematic product.
