Hong Kong customs arrests sole director of online household product store after shoppers file 164 complaints over undelivered orders
- Post learns Rabbit N Radish operated its online store for several years, selling products such as clothing, beauty and cosmetics, as well as household goods
- Retailer received 164 complaints from patrons, allegedly breached Trade Descriptions Ordinance, customs says
Hong Kong customs officers have arrested the sole director of an online household products store, after the now-closed retailer received 164 complaints from customers over the failure to deliver on prepaid orders.
The Post learned that Rabbit N Radish operated its online store for several years, selling products such as clothing, beauty and cosmetics, as well as household goods.
Lucy Lam Yim-lan, senior investigator of the customs’ trade descriptions investigation bureau, said on Thursday that the store “abruptly” announced its closure last month, leading to the 164 complaints.
After an investigation, customs arrested a 65-year-old man, the company’s sole director, for allegedly wrongly accepting payments when selling products, in contravention of the Trade Descriptions Ordinance.
2 arrested over HK$400,000 in undelivered goods from Hong Kong online shop
The Consumer Council also received 19 complaints from March to early April this year.
Complainants reported making prepaid orders for various household goods but failed to receive the goods or obtain refunds from the shop, Lam said.
The total amount involved came to about HK$170,000 (US$23,470), with the largest individual case amounting to around HK$20,000.
The director was released on bail pending further investigation, Lam said.
Under the ordinance, which is enforced by customs, a trader breaks the law if payment is accepted with no intention of delivering the product, or plans to supply a materially different product, or there are no reasonable grounds for the trader in meeting the promised deadline.
The maximum penalty is a fine of HK$500,000 and imprisonment of five years.
The department reminded consumers to stay vigilant when shopping online and to retain transaction receipts and related records.
“Online shoppers could consider payment options such as cash on delivery or shop at reputable shops,” Lam said.
An option of paying a deposit first and then settling the balance later was another safer choice when ordering goods online, the authority added.
