Bitcoin rewards app Lolli has fired back against Alibaba’s denials of being in partnership with the company.
The shopping app announced on Singles Day that it had partnered with the Alibaba Group. Their supposed collaboration would reportedly enable its shoppers in the US to earn five percent back in Bitcoin every time they make a purchase.
Alibaba has since denied they agreed to a partnership with a company representative telling CoinDesk that Lolli didn’t have the right to claim they are partnered with either the Alibaba Group or with Alibaba.com.
According to Alibaba’s spokesperson, one of the company’s contractors “hired a subcontractor who brokered an affiliate marketing program with Lolli.” Alibaba insisted that the arrangement was done without the company’s knowledge and that the subcontractor’s services has since been terminated. The spokesperson said it also means that Lolli should not promote or drive traffic to Alibaba.com.
Lolli CEO Alex Adelman recently fired back against Alibaba’s claims. He stated in an email sent to Cointelegraph that they have been partnered with the e-commerce giants since May via AliExpress. Adelman also claimed Lolli helped to significantly boost AliExpress revenue and distributed the promised bitcoin rewards to loyal shoppers.
Aubrey Strobel, Lolli’s Head of Communications, said the online retail giant even trialed the company’s services for a day during its Singles Day campaign. But when reports surfaced about Alibaba working with a bitcoin rewards company attracted the attention of the public, they decided to break the contract and end the partnership without just cause.
Lolli’s CEO explained that the contractual agreement the agency representing Alibaba.com approved included promoting the site by using its brand, email marketing, and social media. Adelman said there was no intent on Lolli’s end to “misrepresent Alibaba.”
CoinDesk commented that contractual agreements they’ve seen does suggest there’s permission to use “Alibaba related keywords” in the online materials.
Adelman insists the situation is unfair to Lolli as they had a mutual agreement with the agency representing Alibaba.com to rollout a partnership with Singles Day in mind.
He went on to say that Alibaba denying their arrangement defames their brand when they did nothing wrong and even abided by everything that was contractually agreed upon by both parties. Adelman also pointed out that had to be integration before they could even send sales to another company’s site.
The consensus is there’s miscommunication between the two parties. Lolli might have looked upon its agreement with an Alibaba agent as an expansion of its working arrangement. Meanwhile, Alibaba might have presumed it was a “transactional” and private deal between third parties and as such, does not consider it official.