Beware of Rip-Off Tactics at Ginseng and Dried Seafood Shops -
CHOICE # 423 (January 16, 2012)
PDF version
With the sharp increase in complaints against ginseng and dried
seafood shops, consumers are advised to watch out for the dishonest
sales tactics adopted by some of these shops.
Complaints received by the Consumer Council about ginseng and
dried seafood shops had seen a 34% jump from 228 cases in 2010 to
305 cases in 2011. Cases that involved misleading price indication
rose 88% from 117 to 220 in 2011, of which nearly 85% of the cases
were reported by tourists.
A lot of these complainants were lured into buying the
merchandise without getting a clear idea of the accurate unit
price, and felt being cheated subsequently when receiving a bill
much higher than what they expected.
A mainland tourist Mr. Li was persuaded by a salesperson to take
herbal tea for strengthening his liver and kidney as he "looked
sick". When Mr. Li asked about the unit price, he was told that the
prescription would be nothing expensive, with poria cocos priced
just HK$8, the notoginseng flowers at HK$8 and Dendrobium nobile
Lindl at HK$385, but he was not informed of the price per unit.
Though Mr. Li repeatedly asked how much it would cost for the
medicine, the salesperson evaded his questions but instead ground
all herbal ingredients into 3 jars of fine powder. Mr. Li had
therefore have to hand over his credit card for payment. Upon
receipt of the bill, Mr. Li found that he was charged HK$28,656 and
felt that he was cheated. He then contacted a friend in Hong Kong
who called the police on his behalf.
After the police mediation, the shop agreed to cancel the
transaction but insisted that Mr. Li should purchase a jar of
herbal powder for HK$5,000. Mr. Li submitted and later sought
assistance for refund via the Consumer Council. But the shop
refused Mr. Li's request on the ground that a settlement had been
reached between both parties at the spot. Mr. Li was later advised
to report the shop's misleading price indication to Customs and
Excise Department.
In another case, a consumer Miss Wong was attracted by the call
of a street vendor outside a dispensary in Yuen Long that the
abalone was sold at HK$200 a catty. Amidst the jostling crowds who
were in a hurry to buy, Miss Wong told the vendor she would like to
have a catty too. Without sufficient cash, she settled the
transaction by credit card. As soon as she got back home and read
the transaction slip, she felt cheated as the value of the bill,
instead of HK$200, was HK$3,200. Miss Wong later learned from the
credit card issuer company that the bill was charged by a seafood
and cooked food company.
Upon receiving the complaint from Miss Wong, the Consumer
Council tried to contact the company by mail and telephone, but no
response was received, and later the company's telephone also
ceased operation. Unable to reach the company for further
mediation, the Consumer Council explained to Miss Wong that the
amount on the credit card receipt could hardly serve as sufficient
evidence to show that the company had engaged in misleading act or
false representation, and advised Miss Wong to consider taking the
case to the Small Claims Tribunal.
Here are some of the scenarios and tactics that consumers should
beware of when patronizing ginseng and dried seafood shops:
- Customers being asked to take and buy expensive medicine as
therapy for "unhealthy" symptoms mentioned by the
salesperson.
- Retailers appeared evasive when asked about the price and unit
of quantity of the product.
- The unit price of the merchandise appeared in small print or
being obscured by the salesperson or the merchandise.
- Salesperson proceeded to slice up or pulverize the medicine in a
hurry to create the impression that the deal was made.
- Customers are often asked to pay by credit card to make it
difficult for them to cancel the deal once the card is swiped.
Under the Trade Descriptions Ordinance, retailers are required
to display the signs that indicate the price and weight unit of the
merchandise in a way readily comprehensible to the customers. The
sellers may commit an offence if they engage in misleading price
indication, or where there is a discrepancy between the claims and
properties of the merchandise sold.
Consumers may report such misleading acts or false trade
descriptions to the Customs and Excise Department for further
investigation or action. /p>
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