First fine for crisps cheat at Wellcome

2014-02-13

■First fine for crisps cheat at Wellcome

Wellcome Supermarket has been fined HK$10,000, after apparently discounted potato chips sold at its Yau Ma Tei branch turned out to be even pricier than that listed on their original tags.

It is the first time a supermarket has been convicted under the amended Trade Descriptions Ordinance that took effect on July 19.

Wellcome was fined yesterday after pleading guilty on Thursday at Kwun Tong Magistrates' Courts to a charge of possessing goods with a false trade description.

The Customs and Excise Department took action after a complaint was made.

"Customers were told they could buy two packs of crisps for a discounted price at HK$11.50, while the standard price showed HK$5.50 on the tag," the department said.

"The total price for purchasing two pieces of the goods separately was actually lower than the claimed discounted price, but the price tag would mislead consumers into buying more so as to enjoy a price advantage which in fact did not exist," it added.

The department reminded traders not to supply products with a false trade description, otherwise they may be in breach of the ordinance.

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

The department received 2,360 complaints last year relating to the ordinance, with 85 percent of them recorded since July.

The ordinance also covers how prices are calculated as well as the existence of any price advantage or discount.

Traders have to also verify whether the product information that is provided to consumers is accurate.

If traders make price comparisons, they should be able to show clearly what these prices are being compared to.

They should also show that any claims made are accurate and valid, particularly with regards to declarations of lower prices.

A spokeswoman of Wellcome said the supermarket chain respected the court's decision.

Since that incident, the chain store has immediately enhanced operational guidelines and staff training on the ordinance to ensure that every operational detail complies with applicable laws in Hong Kong, she said.

Source: The Standard