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Buyer beware: Customs officers display a pamphlet series that aims to educate consumers about common unfair commercial practices.

Misleading practice: The Customs special duties team is targeting dispensaries that pass off look-alike products to customers who are looking for the genuine famous brand.

Buyer beware Misleading practice

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Trade law curbs unfair practices

July 14, 2014

Both consumers’ and traders’ awareness of unscrupulous trade practices have increased since the amended Trade Description Ordinance came into effect a year ago, the Customs & Excise Department says.

The amended law bans misleading or non-factual advertising and unfair commercial practices, to ensure that trade descriptions of goods and services are clear and accurate. A wave of publicity followed its implementation and appears to have had an impact.

The department sees two encouraging signs: Consumers are lodging complaints when they feel they have been wronged, and traders are curbing unscrupulous practices.

Trade-practice complaints rose abruptly after the amended law came into force. From last July until mid-June, Customs had received 4,471 complaints from consumers. About three-quarters of them related to goods, mostly food and electronics. The services complaints were mostly related to travel and beauty sectors.

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Both consumers’ and traders’ awareness of unscrupulous trade practices have increased since the amended Trade Descriptions Ordinance was implemented one year ago, the Customs & Excise Department says. One result is that sales people are providing clearer and more honest messages.
For example, travel agencies may avoid using the phrase “tours depart daily” in their promotions if, in fact, they depart only when there is a minimum number of people signed up for the tour.
Published air ticket prices now state whether or not they include airport tax and fuel surcharges.
Phrases like “lowest price” or “cheapest in Hong Kong” are rarely seen now, replaced by descriptions such as “affordable” or “highly competitive”.
Supermarkets offering a special price for a particular item usually show the “regular” price for comparison – even if that item had never been sold at that price. Now, stores are using the term “reference price” to avoid violating the ordinance.
After the amended ordinance came into effect last year, Customs set up a special duties team with 27 officers to deal with complicated cases or cases which required officers to work undercover as customers.
They have cracked down on a ginseng and dried seafood shop intending to mislead customers over the real price of goods. The clerk would give a price - without saying whether it was for a catty or a tael.
The team also took to task some dispensaries that tried to pass off look-alike medicinal products as the genuine famous brands customers requested.
The look-alike products often have similar packaging design, ingredients, dosages and price.
These two pill products for upset stomachs are a case in point. The logo of the genuine product is a trumpet; the look-alike’s is a saxophone.
Salespeople who claim the look-alike is the genuine article contravene the Trade Descriptions Ordinance.
Since the amended ordinance came into effect, up until mid-June this year, Customs officers had received 4,471 complaints, about three quarters of them related to goods – mostly food and electrical products. Most of the service complaints were about travel and beauty services.
Many of the complaints were repeat reports, and some did not include sufficient information. Customs did follow up and investigate about 1,000 cases, most involving false trade descriptions and misleading omissions. It successfully prosecuted 18 cases, in which traders were fined or jailed.
Consumers who have a trade practice complaint can call the hotline, 2545 6182.

Many of the complaints were repeat reports, and some did not include sufficient information. Customs has investigated about 1,000 cases, most involving false trade descriptions and misleading omissions. It successfully prosecuted 18 cases, and three offenders were sentenced to jail or fined.

To comply with the law, traders are providing clearer and more honest messages. Travel agencies now avoid using the phrase “tours depart daily” in their promotions if, in fact, they depart only when a minimum number of people have signed up for a tour.

Published air ticket prices now state whether or not they include airport tax and surcharges, and tutorial centres provide the number of students who have achieved top marks instead of exaggerating their claims to being the “best” without any supporting data.

Undercover research

Last year, Customs set up a special duties team with 27 officers to deal with complicated cases or cases which required officers to work undercover, posing as customers.

Superintendent of Customs Liu Ping-tong, the team’s leader, said it mainly targets shops selling dried seafood and medicinal goods that advertise prices without a measure unit such as per catty or tael; dispensaries using suspected false descriptions in passing off look-alike products as genuine brand-name medicinal products; and companies selling travel club memberships that use misleading information or coercion.

Some crafty dried seafood traders have put the measurement unit on their price tags – but in tiny text, so customers could still be duped, Mr Liu said.

Forewarned is forearmed. The department has published pamphlets to educate consumers about common unfair commercial practices, particularly in sales of beauty-treatment packages, restaurant group discounts, and gym memberships, to protect them from becoming targets.

Consumers who have a trade-practice complaint can call the Customs hotline, 2545 6182.

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