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.
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