(BrisbaneTimes) - Shanghai police have seized 14,000 bottles of fake Penfolds wine being sold by counterfeiters in China.

The fake Penfolds wine was being sold through Alibaba's online flea market Taobao, as well as pubs and karaoke bars.

The three-month investigation followed a complaint to Alibaba by Australian wine company Treasury Wine Estates that suspicious retailers were charging "extraordinarily low prices" for Penfolds wine in its fastest growing market.

Alibaba called in police, who said at a press conference on Wednesday that 13 suspects had been detained, including Mr Dai, a wine dealer who was selling fake Penfolds for 200 yuan ($40) per bottle online, while it should retail for 600 to 3000 yuan ($120 to $595).