---
title: "Pinduoduo and Three Squirrels: Who Is Lying?"
description: "On the first day of the National Day holiday, Three Squirrels issued a statement accusing Pinduoduo of selling unauthorized products, while Pinduoduo responded by framing the issue as a battle between 'new consumption' and 'new retail,' hinting at forced 'either-or' choices. The dispute highlights the intense competition among e-commerce platforms ahead of the Double 11 shopping festival."
author: "郭晓康"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2019-10-07"
categories: "E-commerce & Instant Retail"
language: "en"
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original_source: "https://mp.weixin.qq.com/s/1l_ssZWQoadV-CvvLR0sLQ"
translation: "https://xinjignxiao.com/zh/articles/%E6%8B%BC%E5%A4%9A%E5%A4%9A%E5%92%8C%E4%B8%89%E5%8F%AA%E6%9D%BE%E9%BC%A0-%E8%B0%81%E5%9C%A8%E8%AF%B4%E8%B0%8E-0c417c56.md"
attribution: "New Distribution — https://xinjignxiao.com/en/articles/pinduoduo-and-three-squirrels-who-is-lying-0c417c56/"
citation: "郭晓康. “Pinduoduo and Three Squirrels: Who Is Lying?.” New Distribution, 2019-10-07. https://xinjignxiao.com/en/articles/pinduoduo-and-three-squirrels-who-is-lying-0c417c56/"
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---

# Pinduoduo and Three Squirrels: Who Is Lying?

> On the first day of the National Day holiday, Three Squirrels issued a statement accusing Pinduoduo of selling unauthorized products, while Pinduoduo responded by framing the issue as a battle between 'new consumption' and 'new retail,' hinting at forced 'either-or' choices. The dispute highlights the intense competition among e-commerce platforms ahead of the Double 11 shopping festival.

**Only when the tide goes out do you discover who's been swimming naked.**
On the first day of the National Day holiday, fireworks lit up Tiananmen Square as the nation celebrated. Amid the festivities, Three Squirrels' official Weibo account released a statement accusing Pinduoduo, stirring the already turbulent e-commerce waters just before the Double 11 shopping festival.
In its statement, Three Squirrels claimed that a large number of unauthorized products were being sold on Pinduoduo, seriously infringing on its intellectual property rights, and that it would take legal action to protect its rights.
In response, Pinduoduo stated that at the end of 2017, Three Squirrels officially opened a flagship store on its platform, and that its brand store on Pinduoduo is still selling products. This year's Double 11 has arrived 10 days earlier than last year, and while the e-commerce industry's goal of 'making it easy to do business' has not yet been achieved, circumstances are stronger than individuals.
Though not explicitly stated, Pinduoduo's pointed remarks are clear.
Since Three Squirrels and Pinduoduo have different accounts, each insisting on its own version, who is lying?
**Three Squirrels: Publicly Accusing Pinduoduo**
The incident began with a Weibo post from Three Squirrels' official account on October 1 at 8 PM. The full text is as follows:
Statement:
During the National Day holiday, we discovered a large number of unauthorized products being sold on the Pinduoduo platform. To protect the legitimate rights and interests of every customer, we hereby declare:
1. Three Squirrels has not opened an official flagship store on Pinduoduo, nor has it ever authorized any distributor or store to sell on Pinduoduo. The source of products bearing the Three Squirrels brand on Pinduoduo is unclear, and after-sales service cannot be provided, so we strongly advise customers to purchase through official Three Squirrels channels.
2. The unauthorized products on Pinduoduo have seriously infringed on Three Squirrels' intellectual property rights. We will soon entrust a professional legal team to take action to protect our rights.
Finally, we thank every customer for their continued support. We will not let you down and will continue to provide safe and healthy snacks for everyone!
Three Squirrels Co., Ltd. October 1, 2019
Three Squirrels came out swinging, using harsh language such as 'unclear source,' 'serious infringement,' and 'legal action' to accuse Pinduoduo.
**Pinduoduo: The Battle Between 'New Consumption' and 'New Retail'**
How did Pinduoduo respond to Three Squirrels' sudden attack?
Pinduoduo's full response:
1. We fully understand that merchants, at 8 PM on October 1, during a time of national celebration and fireworks, were forced to issue a statement saying that products sold on Pinduoduo were 'unauthorized.' The pressure must be immense.
2. This year's Double 11 has 'kicked off' 10 days earlier than last year, indicating that this year's intensity is unusual. We ask all parties to carefully discern the situation, and PR firms to be cautious in their placements. Pinduoduo believes that Double 11 should be a shopping season for consumers and merchants, not a carnival of public opinion.
3. If Pinduoduo faces more short-term difficulties and greater pressure from 'either-or' choices, it actually proves that the platform's direction is correct. The 'new consumption thinking' represented by 'inclusiveness, people-first, and more openness' will inevitably be in long-term competition with the 'new retailism' that uses capital and market advantages to integrate and control brand channels online and offline to maximize platform profits. The biggest beneficiaries will be ordinary consumers.
4. The implemented E-Commerce Law clearly stipulates that 'e-commerce platform operators shall not use service agreements, transaction rules, technical means, etc., to impose unreasonable restrictions or additional unreasonable conditions on transactions, transaction prices, or transactions with other operators by operators within the platform.'
The law stipulates this, indicating that in the e-commerce industry, 'making it easy to do business' has not yet been achieved, but circumstances are stronger than individuals.
Pinduoduo's official response to Three Squirrels was understated, but it quickly shifted the focus to the battle between e-commerce platforms, proposing the concept of 'new consumption thinking' against competitors' 'new retailism,' and explicitly opposing 'either-or' choices, insinuating other e-commerce platforms.
**Three Squirrels Official Customer Service: No Experience of 'Either-Or'**
In response to Pinduoduo's reply, Hefan Finance (ID: daxiongfan) called Three Squirrels' official customer service.
Hefan Finance: Are the Three Squirrels products sold on Pinduoduo genuine?
Three Squirrels customer service: We have not opened a store on Pinduoduo, so we cannot guarantee that Three Squirrels products sold on Pinduoduo are genuine.
Hefan Finance: Pinduoduo issued a statement saying that Three Squirrels officially opened a flagship store on Pinduoduo at the end of 2017. How do you respond to that?
Three Squirrels customer service: A few years ago, we did authorize Pinduoduo to sell Three Squirrels products, but that was in the past. The authorization period has long ended.
Hefan Finance: Since the authorization ended long ago, why didn't you issue a statement earlier, but instead released it now via official Weibo?
Three Squirrels customer service: Because recently, Three Squirrels has frequently received complaints from users about buying counterfeit products on platforms we have not authorized. To protect our brand image, we issued the statement at this time.
Hefan Finance: Besides the official flagship stores authorized by Three Squirrels, there are also many small stores on e-commerce platforms like Tmall, Taobao, and JD.com selling Three Squirrels products. What is Three Squirrels' stance on this?
Three Squirrels customer service: This situation does exist, and it's a headache for us. First, we cannot guarantee the authenticity of products sold in these stores, nor do we know their supply channels. We are also in communication with Tmall and JD.com to find a solution.
Hefan Finance: Pinduoduo's statement suggests that brands are 'forced' to issue 'loyalty statements' before Double 11 due to 'either-or' choices by e-commerce platforms. How does Three Squirrels respond to that?
Three Squirrels customer service: That's not the case.
**Pinduoduo Official Customer Service: We Don't Know**
After talking with Three Squirrels' customer service, Hefan Finance (ID: daxiongfan) called Pinduoduo's official customer service with questions.
Hefan Finance: Are the products sold in the Three Squirrels Store No. 2 on Pinduoduo genuine?
Pinduoduo customer service (website): You can judge for yourself by looking at reviews and sales volume.
Hefan Finance: So you don't know if they are genuine?
Pinduoduo customer service (website): I'm a frontline customer service representative, so I don't know.
Since the phone customer service didn't know, Hefan Finance (ID: daxiongfan) also contacted Pinduoduo's official customer service through the Pinduoduo app.
Hefan Finance: Are all products sold in Three Squirrels Store No. 2 genuine?
Pinduoduo customer service (platform): The platform will never tolerate counterfeit sales. If a merchant is found to be selling counterfeits, they will be severely punished once verified.
Hefan Finance: Three Squirrels' official Weibo statement says it has not authorized Pinduoduo. Is Three Squirrels Store No. 2 a Three Squirrels store?
Pinduoduo customer service (platform): Your question needs to be reported to the relevant department for verification. You can rest assured and make a purchase. If there are any issues after purchase, we will verify and handle them for you.
Hefan Finance: Can you give me a reply after verification?
Pinduoduo customer service (platform): Please pay attention to the merchant updates on the platform.
Pinduoduo's customer service response still didn't solve the problem, so we contacted the Three Squirrels Store No. 2 on Pinduoduo.
Hefan Finance: Hello!
Three Squirrels Store No. 2: Dear, the store is currently resting and cannot reply at the moment. Our customer service will contact you after work. Thank you for your understanding.
**Pinduoduo Insider: The Biggest Losers Are Merchants**
After failing to get answers from Pinduoduo's official customer service, Hefan Finance (ID: daxiongfan) contacted an insider at Pinduoduo, referred to as M.
Hefan Finance: How does Pinduoduo characterize the rights protection incident involving Three Squirrels' official Weibo statement?
M: This is essentially an 'either-or' choice, a platform dispute. Merchants are forced to choose one side, and in the whole affair, merchants suffer the most and lose the most benefits.
Hefan Finance: We noticed that Pinduoduo has repeatedly mentioned the concept of 'either-or' choices. Other e-commerce platforms have not directly responded to such issues. How do you know that merchants are being forced to choose by platforms?
M: The term 'either-or' was not coined by Pinduoduo. There were precedents long ago. During the JD.com and Alibaba dispute, 'either-or' was fiercely fought. From last year's Double 11 to now, 'either-or' incidents of varying scale have never stopped. Before this year's 618, Midea, Joyoung, and Supor successively issued statements saying they would close their Pinduoduo flagship stores. Recently, Three Squirrels and Hanhoo have also issued Weibo statements to protect their rights. These brands have sold hundreds of thousands of genuine products on Pinduoduo, so there's no reason to abandon the platform.
Hefan Finance: Some believe that Pinduoduo is elevating this incident to the level of e-commerce platform competition to appear weak and gain sympathy. How does Pinduoduo respond to that?
M: When Pinduoduo merchants were first subjected to 'either-or' choices last year, we spoke out, including Pinduoduo co-founder Dada, who also posted on social media. Many may think Pinduoduo has a persecution complex, but this has been going on for a year, and cases are increasing.
Hefan Finance: Back to the incident itself: Three Squirrels says it has not authorized Pinduoduo to sell its products, while Pinduoduo claims that Three Squirrels authorized it at the end of 2017. Is Three Squirrels actually authorized on Pinduoduo? Is the authorization contract still valid?
M: This is hard to say. There are multiple interests involved, including brand owners, distributors, secondary channels, tertiary channels, etc. The interest chain is long. Saying too much might be detrimental to merchants or distributors. Since many parties are involved, it may be difficult to answer.
**Conclusion**
Three Squirrels' official Weibo rights protection statement appears to be a commercial dispute with Pinduoduo, but in reality, it marks the beginning of the undercurrents erupting in the e-commerce world on the eve of Double 11.
Pinduoduo's response did not target Three Squirrels directly but instead said, 'In the e-commerce industry, 'making it easy to do business' has not yet been achieved,' and its target is clear.
Source: Hefan Finance (ID: daxiongfan)
If a tip is used, we will pay 400-2000 yuan. **China FMCG + Internet Professional New Media** **Committed to FMCG manufacturer and distributor transformation and channel digital solutions**


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## Citation metadata

- Publisher: New Distribution
- Author: 郭晓康
- Published: 2019-10-07
- Canonical: https://xinjignxiao.com/en/articles/pinduoduo-and-three-squirrels-who-is-lying-0c417c56/
- Original source: https://mp.weixin.qq.com/s/1l_ssZWQoadV-CvvLR0sLQ

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