Traditional Chinese Simplified Chinese Email this article news.gov.hk
Customs combats unscrupulous trade practices under newly amended Trade Descriptions Ordinance
*********************************************************

     In enforcement action taken early this week, the Customs and Excise Department (Customs) arrested a 36-year-old man who was the director of a chain furniture store suspected of wrongly accepting payment under the provisions of the Trade Descriptions Ordinance (TDO), a Customs spokesperson said today (November 28). The man was released on police bail. Investigation is ongoing.

     Customs earlier received a number of complaints about the company from members of the public as well as referrals from the Police and Consumer Council. The allegation indicated that a chain furniture store failed to deliver furniture to customers at the agreed time. Investigation revealed that the chain store continued accepting orders and payment from other customers while using various pretexts to delay the delivery of goods. The chain store subsequently ceased business and closed all its outlets in September 2013 without taking any remedial measures or making refunds to customers. In six cases out of the complaints received, the amount paid by the consumers ranged from $4,300 to $10,500, with a total value of $42,000.

     The amended TDO, which came into effect on July 19, 2013, aims to prohibit unscrupulous trade practices including "wrongly accepting payment". A trader may commit an offence of "wrongly accepting payment", if at the time of accepting payment for a product, there are reasonable grounds for believing that the trader will not be able to supply the products in the time specified or within a reasonable time; or at the time of accepting payment, a trader intends not to supply or intends to supply a materially different product. The maximum penalty upon conviction is a fine of $500,000 and imprisonment for five years.

     The spokesperson expressed that Customs has been checking for any violation of provisions of the TDO and will take appropriate enforcement actions to combat unscrupulous trade practices.

     The spokesperson urged traders to abide by the law and for consumers to be cautious when making pre-payment for a product or services so as to minimise losses.

Ends/Thursday, November 28, 2013
Issued at HKT 17:41

NNNN

Print this page