KUALA LUMPUR: The Domestic Trade and Cost of Living Ministry seized 3,545 pieces of gold in various forms worth RM82,725 through Ops Tulen at a business premises in the Kuchai Lama Business Centre, here, recently.
The operation under the Trade Descriptions Act 2011 (Act 730) was carried out by six enforcement officers from the ministry's Enforcement Division after the premises were suspected of selling gold products that did not meet the purity standards through social media.
"Test results using X-Ray Fluorescence (XRF) equipment on the gold coins purchased found that the actual gold content was much lower than the stamped purity of AU 999.9, with an average reading of around 77%," the ministry said in a statement on Sunday (Jan 18).
Further inspection found that the premise was a supplier to a retailer who marketed the same gold products online, while the products displayed at the premises were the same as those advertised on social media.
Tests on the seized gold showed that the gold content varied between 80% and 98% for each piece weighing 0.01g.
In this regard, the premises involved were suspected of committing an offence under Section 5(1)(a) of the Trade Descriptions Act 2011 for making false trade descriptions regarding the purity standards of precious metal goods.
In addition to the gold, several pieces of equipment and documents were also seized to assist further investigations.
The ministry said legal action will be taken against any party who makes false trade descriptions regarding the content, type or name of the goods under Section 5(1)(c) of Act 730.
For individuals, the first offence can be fined up to RM250,000 or imprisonment for a maximum of three years or both, while for the second or subsequent offence, a fine of up to RM500,000 or imprisonment for a maximum of five years or both.
For companies, a fine of up to RM500,000 can be imposed for the first offence and up to RM1 million for the second or subsequent offences.
The ministry stressed its commitment to continue intensifying enforcement to combat misleading and deceptive business practices, especially involving the sale of precious metal products.
The public who have information or complaints regarding fraudulent trade activities can channel complaints to the Domestic Trade and Cost of Living Ministry via WhatsApp 019-848 8000, its e-Complaint portal at http://eaduan.kpdn.gov.my, Call Centre 1-800-886-800 or its Ez ADU application. — Bernama
