XN000022-1987-07-25 — Page 3

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SATURDAY, JULY 25, 1987

CUSTOMS OFFICERS RESPONDED TO THE DIA'S COMPLAINT AND SEARCHED THE COMPANY'S PREMISES IN JAUNARY THIS YEAR, SEIZED 1,931 BROCHURES WHICH PUBLICISED SUCH SIMULATED STONES AS "RUSSIAN DIAMONDS" EXPERTS' OPINION GIVEN BY THE GEMOLOGICAL ASSOCIATION OF HONG KONG MAINTAINED THAT "IT IS IMPOSSIBLE TO NAME CUBIC ZIRCONIA AS RUSSIAN DIAMONDS".

INVESTIGATION ESTABLISHED THAT THE COMPANY HAD CONTRAVENED THE TRADE DESCRIPTIONS ORDINANCE.

CLEARLY

PROSECUTION THUS BEGAN, THE FIRST CONVICTION OF FALSE TRADE DESCRIPTIONS USED IN ADVERTISEMENT CAME ON JULY 14 THIS YEAR.

MR HOWARD FELT THERE WERE NOT MANY CASES IN WHICH A COMPANY USED FALSE TRADE DESCRIPTIONS IN ITS ADVERTISEMENTS TO PROMOTE GOODS SUPPLIED IN THE COURSE OF TRADE AND BUSINESS BUT MEMBERS Or THE PUBLIC SHOULD MAKE COMPLAINT ΤΟ THE DEPARTMENT

ADVERTISEMENTS WERE DELIBERATELY MISLEADING.

IF

THEY FELT

IS SO SERIOUS IT IS CLEARLY CONTRAVENE THE

"WE DO NOT CONSIDER THE SITUATION IN HONG KONG THAT WE SHOULD TAKE PROSECUTION ACTION, EXCEPT WHERE ESTABLISHED THERE IS AN ELEMENT OF FRAUD WHICH WOULD TRADE DESCRIPTIONS ORDINANCE," SAID MR HOWARD, NOTING THAT IT WOULD BE PREFERABLE FOR ORGANISATIONS SUCH AS THE 4AS TO ADVISE ADVERTISERS ON CORRECT STANDARDS OF ADVERTISING. (THE 4AS STANDS FOR THE ASSOCIATION OF ACCREDITED ADVERTISING AGENTS OF HONG KONG.)

TO THIS END A CODE OF PRACTICE WAS ISSUED BY THE 4AS TO THE ADVERTISING INDUSTRY IN 1984 AND HAS BEEN PERIODICALLY AMENDED AS NECESSARY TO SUIT PRESENT DAY CONDITIONS.

THE TRADE DESCRIPTIONS ORDINANCE PROHIBITS FALSE TRADE DESCRIPTIONS, THE FORGERY OF TRADE MARKS AND MISSTATEMENTS IN RESPECT OF GOODS PROVIDED IN THE COURSE OF TRADE AND PROVIDES OFFENCES FOR MISDESCRIBING GOODS IN THE FORM OF ADVERTISEMENTS,

THE TRADE DESCRIPTIONS ORDINANCE WAS ENACTED IN 1981, UPDATING

THE FORMER MERCHANDISE MARES ORDINANCE.

IN THIS FIRST HALF YEAR UNDER THE TRADE DESCRIPTIONS ORDINANCE THE NUMBER OF SEIZURES MADE BY CUSTOMS OFFICERS TOTALLED 525, WITH A VALUE OF $27.1 MILLION. NOT TAKING INTO CONSIDERATION THE RECENT CASE, THE NUMBER OF PERSONS OR FIRMS PROSECUTED WAS 415 AND FINES AMOUNTED TO $2.44 MILLION. THE NUMBER OF PERSONS GIVEN CUSTODIAL SENTENCES WAS 14.

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