Trade Descriptions Ordinance
Section 7 of the Trade Descriptions Ordinance (Cap. 362) provides that:
Any person who:
(a) in the course of any trade or business—
(i) applies a false trade description to any goods; or
(ii) supplies or offers to supply any goods to which a false trade description is applied; or
(b) has in his possession for sale or for any purpose of trade or manufacture any goods to which a false trade description is applied,
commits an offence.
Section 2 of the Trade Descriptions Ordinance (Cap. 362 ) provides that:
False trade description ( 虛假商品說明 ) means—
(a) a trade description which is false to a material degree; or
(b) a trade description which, though not false, is misleading, that is to say, likely to be taken for a trade description of a kind that would be false to a material degree.
Breach of Trade Descriptions Ordinance by Jade Trader
Case study:
A jade crafts shop owner was sentenced to imprisonment for two weeks suspended for one year and was ordered to offer HK$10,000 in compensation to a victim on 21 November 2018 at Eastern Magistrates' Courts for supplying fake jade with a false trade description, in contravention of the Trade Descriptions Ordinance, Cap. 362.
The Hong Kong Customs & Exercise Department received information alleging a jade crafts shop in Sheung Wan made a false claim and sold a jade product which was claimed to be a specific type of jade. After examination, it was confirmed that the product was man-made glass, different from what had been declared.
Under section 18 of the Trade Descriptions Ordinance, Cap. 362:
Any person who commits an offence under section 7 of the Ordinance shall be liable—
(a) on conviction on indictment, to a fine of HK$500,000 and to imprisonment for 5 years; and
(b) on summary conviction, to a fine at level 6 and to imprisonment for 2 years.
(1A) Any person who commits an offence under section 16A(3) shall be liable to a fine at level 2 and to imprisonment for 3 months.
(2) Any person who commits an offence under section 17 shall be liable to a fine at level 3 and to imprisonment for 1 year.
For legal services in relation to Trade Descriptions Ordinance, please contact Chow & Cheung, Hong Kong Solicitors, Notary Public & China Appointed Attesting Officers
Tel: + 852 2856 3799 Email: cac@ccsn.hk
www.ccsn.hk
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