While online shopping platform Pinduoduo raised more than $1.6 billion in a NASDAQ IPO just three years after its launch, the company’s success hasn’t been without controversy. In an article from Huxiu.com that went viral on Chinese social media, author Da Wei Weng delivers a scathing critique of the company’s sales of shoddy and counterfeit products. While the company’s defenders claim that the pricing allows more consumers to purchase the goods and to improve their standard of living, Da Wei Weng reprimands Pinduoduo’s misleading and underhanded advertising tactics. The flood of fake goods the company sells, he argues, has dialed back hard-fought consumer rights gains. getAbstract recommends the article to consumers in China and consumer watchdogs everywhere.
In this summary, you will learn
- Why Pinduoduo’s business model has been incredibly successful,
- How Pinduoduo’s advertising tactics may be misleading or simply false, and
- How its listings of fake goods counteract the government’s efforts to build stronger consumer protections.
About the Author
Da Wei Weng is a writer for Huxiu.com.