Marcus Lau, the Customs' Head of Trade Descriptions and Transshipment Controls Bureau, shows the ginseng and dried sea product for which shop owners had failed to display readily discernible prices with reference to the unit quantity. Edmond Tang

HONG KONG: Nine men were arrested Friday as police and Customs and Excise Department officers began cracking down on unlawful sales practices. It was the first such operation since the newly amended Trade Descriptions Ordinance came into effect Monday.

The Customs and Excise Department and police launched the joint operation codenamed "Steelyard" Thursday afternoon.

They seized huge amounts of Chinese medicine and dried seafood, such as abalone, shark fin and fish maw, valued at HK$24.5 million. The goods were seized from eight shops in Tsim Sha Tsui and Yau Ma Tei districts. The Customs will apply for forfeiture of the seized materials by the owners.

The goods were displayed for sale at their unit prices, with weight referring either to catty or tael.

"However, the weight units were presented in a much smaller size than the price displayed on the placards and in many cases weights were obscured among other wording, making an accurate appraisal of price per unit not readily comprehensible to customers," said Marcus Lau, the Customs' Head of Trade Descriptions and Transshipment Controls Bureau.

He said the most serious case presented the weight unit in a tiny font that appeared like a line or underscore.

He said the unscrupulous retailers lured customers with misleading signage, usually displayed in front of the stores.

The vendors then would introduce much more expensive products to customers, giving no clear indication of the actual price.

If the product was dried seafood, the dishonest shops would slice it then demand payment from shoppers.

Some shops placed products priced according to different weight units adjacent to one another to confound customers.

Customs officers and police arrested nine men aged 26 to 46. The men were described either as shop owners or operators. All were released on bail while investigations continue.

Lau said the retailers intended to deploy deceptive materials and practices to enhance profit.

"I don't think these shops are ignorant of the law as we've done a lot of publicity in recent months," he said in reference to the amended Trade Descriptions Ordinance.

The legislation forbids dishonest sales practices including misleading pricing. Any presentation of price whose meaning is obscured or renders comprehension difficult is deemed to be in breach of the law.

The maximum penalty is a fine of HK$500,000 and five years' imprisonment.

Lau said the price set by reference to weight units must clearly be shown. There is no defined size for presentation. Interpretation of the standard rests with the courts.

Lau added that he didn't find this principle subjective.

He reminded consumers that there are more unethical shops in tourist spots and that they should report misleading prices to the Customs Department.

(HK Edition 03/07/2009 page1)