PUTRAJAYA: The Domestic Trade and Cost of Living Ministry has seized over RM82,000 worth of gold pieces in a special operation in Kuala Lumpur over the alleged misrepresentation of purity standards.
Its enforcement division said the seizure, conducted during an operation codenamed Op Tulen, was carried out under the Trade Descriptions Act 2011 at a business premise in Pusat Perniagaan Kuchai Lama.
“The operation involved six enforcement officers who found that the premises was supplying gold products to retailers and promoting the items for sale through social media platforms.
“Tests using X-ray fluorescence (XRF) equipment on a gold bar purchased by ministry officers showed the actual gold content was significantly lower than the purity level stamped on the item, which indicated AU 999.9,” it said in a statement today.
It added that the average gold content recorded was only about 77 per cent, which did not match the advertised standard of purity.
“Further checks showed that gold products displayed at the premises were the same as those promoted online.
“Subsequent tests on seized items showed varying gold content ranging between 80 per cent and 98 per cent for each piece weighing 0.01 gram,” it said, adding that the premises is being investigated under Section 5(1)(a) of the Trade Descriptions Act 2011 for alleged violations of standards of purity for goods made from precious metals.
It said they seized 3,545 pieces of gold in various forms worth RM82,750. The ministry also warned that any party found making false trade descriptions regarding the content, type, or name of goods could be charged under Section 5(1)(c) of the same Act.
Individuals convicted of a first offence can be fined up to RM250,000 or jailed for up to three years, or both.
For subsequent offences, the fine can reach RM500,000 or imprisonment of up to five years, or both.
Companies face fines of up to RM500,000 for a first offence and up to RM1 million for repeat offences.
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