Legal Question in Product Liability in New York
Internet Fraud
I recently used an internet B2B website called Alibaba. They have a system in place on their website in which the sellers of products pay a subscription fee to Alibaba in order to obtain a ''trustpass'' profile. Alibaba maintains that this trustpass is meant to provide transparency-- in essence to certify that the company is a legitimate business entity. I contracted with one of these sellers with a trustpass profile and performed my due diligence in checking them out. I sent them a sum of money for test products and never heard from them again once they received the funds. Unfortunately I did not use a credit card so I was unable to file a dispute. I contacted Alibaba about this and they said they could not take any action unless I filed a lawsuit against this individual and won. They are based out of Pakistan, making this nearly impossible.
I would like to sue Alibaba as I relied upon their certification of this company as legitimate. Furthermore, they have done nothing to investigate my claim or remove the fraudster from their site. In my opinion, they are complicit in the fraud that is taking place. I have since learned that there are many people with similar stories. How should I proceed?
1 Answer from Attorneys
Re: Internet Fraud
Very interesting issue. One reason that I'm responding is that I do know that Alibaba is used by at least some (possibly many) individuals or entities engaged in fraudulent schemes. Getting an Alibaba posting provides their scam with a veneer of legitimacy, and helps them perpetrate their fraud. It is my understanding that Alibaba does not have a proper, or effective, vetting process, and thus that Alibaba may, in effect, be indifferent to the issue of fraud. If Alibaba does go a step further to promote its listers, by issuing a "trustpass", as you describe, you (and perhaps the class of individuals in a similar situation) may have an compelling legal claim against Alibaba itself. Questions of jurisdiction, and so forth, would need to be explored.
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