Chinese e-commerce giant Alibaba Group Holding Ltd, which has made the highest IPO bid at the NYSE in September last year, has teamed up with the US Consumer Product Safety Commission (CPSC) to prevent the sale of nearly 15 illegal toys that are deemed to be dangerous for the kids in the United States.
Speaking on the sidelines of the Hong Kong Toys and Games Fair on Tuesday, CPSC Chairman Elliot Kaye said this is the first such agreement struck between the commission and a foreign company.
“We’re thrilled to cross beyond our borders and work with whomever we need to. The deal is not, however, enforceable,” Kaye said.
The CPSC will provide Alibaba a list of 5-15 dangerous toys of children that the government wants to prevent from entering the domestic market.
According to the CPSC, around 90 percent of American toy imports come from China.
Releasing a statement in this regard, Alibaba corporate affairs executive Jim Wilkinson said that his company would work “collaboratively with the chairman and his team to do everything possible to protect consumers”.
Alibaba controls nearly 80 percent of the e-commerce market in China. The Asian company made the headlines with the world’s biggest initial public offering of USD 25 billion last year.