Customs and Police launch operation against dishonest sales practices

6 Mar 2009

The Customs and Excise Department and the Police yesterday (March 5) afternoon launched a joint operation codenamed "Steelyard" on a number of ginseng and dried seafood shops in Tsim Sha Tsui and Yau Ma Tei districts to crack down on unlawful sales practices under the Trade Descriptions Ordinance.

During the operation, about 70 Customs and Police officers raided the shops and seized large quantities of Chinese medicine and dried sea products from eight shops. The seizures included abalone, fish maw, shark fin, bird's nest, dried scallop, ginseng, cordyceps, and dendrobium with an estimated value of $24.5 million.

All these goods were displayed for sale in the shops at prices set by reference to unit weight of catty or tael. However, the weight units were presented in a much smaller size than the price numerals on the placards and were hidden among other words or Chinese characters that made the accurate price per unit not readily comprehensible to customers.

Nine men, aged between 26 and 46, either shop owners or operators, were arrested. They were released on police bail for further investigation.

Mr Marcus Lau, Head of the Trade Descriptions and Transhipment Controls Bureau of the Customs and Excise Department, today (March 6) said that unscrupulous retailers of Chinese medicine and dried sea products usually displayed unclear and misleading price signs on their goods to attract prospective customers. They would then deploy the deceptive modus operandi of "confounding catty and tael" and fleeced customers with unreasonable prices.

Customs' Trade Descriptions and Transhipment Controls Bureau and the Police Yau Tsim District Crime Squad joined yesterday to crack down on the dishonest sales practice under the newly amended Trade Descriptions Ordinance to safeguard the rights of local and visiting consumers and to protect the reputation of Hong Kong's retailing industry at large.

The Trade Descriptions (Amendment) Ordinance came into effect on March 2, 2009. It prohibits dishonest sales practices, including misleading price indication. Any retailer who displays unclear, incomplete or misleading information as to the price indication of the goods set by reference to a unit of quantity in the course of trade or business commits an offence, and the maximum penalty is a $500,000 fine and five years' imprisonment.

Mr Lau stressed that Customs would enforce the Trade Descriptions Ordinance vigorously and would continue to work closely with the Police to curb dishonest retail practices. Customs will also strengthen its collaboration with the Consumer Council to take appropriate enforcement action against shops that are subject to most complaints. Mr Lau reminded all retailers of the serious consequence of breaching the law.

To report misleading price indication, consumers are welcome to call the Customs 24-hour hotline at 2545 6182, or write to the Trade Descriptions and Transhipment Controls Bureau of the Customs and Excise Department at 14/F, Trade and Industry Department Tower, 700 Nathan Road, Mong Kok, Kowloon.

Ends/Friday, March 6, 2009

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