Supplier convicted for selling health products with false trade descriptions (with photo)

3 Oct 2013

A supplier of health products pleaded guilty earlier at the Eastern Magistracy to two charges of supplying health products with false trade descriptions and possessing such products for sale, in contravention of the Trade Descriptions Ordinance (TDO). The supplier was today (October 3) fined $112,000 for the offences and the seized goods, with a total value of about $1.38 million, were forfeited.

The Customs and Excise Department (C&ED) reminded traders to exercise reasonable diligence to ensure that products for sale are in compliance with the statutory requirements of the TDO.

Acting on information in this case, the C&ED initiated a series of investigations in August last year regarding a health product named Glucotranz Patch, which was suspected to carry false trade descriptions. The investigations revealed that the product was provided by a supplier to a chain retailer for sole distribution in Hong Kong. The product was manufactured in the Mainland but false claims of "Made in Hong Kong" and "Germany TUV Medical European Union Approval" were found on the package.

In the operation launched by C&ED, a total of 6 023 boxes of Glucotranz Patch with false trade descriptions were seized. All boxes carried the false claim "Germany TUV Medical European Union Approval" and among them, 5 630 boxes also displayed a false origin marking "Made in Hong Kong".

A C&ED spokesperson said that Customs will continue to crack down on the supply of goods with false trade descriptions for greater consumer protection.

Under the TDO, any person who supplies goods with a false trade description in the course of trade or business, or that has in his possession for sale any goods with a false trade description, commits a criminal offence. The maximum penalty upon conviction is a fine of $500,000 and imprisonment for five years.

In addition, the spokesperson reminded traders to take note of the amendments to the TDO effective from July 19 this year. The amended TDO further extends its coverage from goods to services and specifies unfair trade practices, including misleading omissions, aggressive commercial practices, bait advertising, bait and switch and wrongly accepting payment.

Members of the public may report any suspected violations of the TDO to the Customs 24-hour hotline 2545 6182.

Ends/Thursday, October 3 2013

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