KPDN enforcement seized 3,545 pieces of substandard gold worth RM82,725 from a Kuchai Lama supplier, with purity as low as 77% instead of the advertised 999.9
KUALA LUMPUR: The Ministry of Domestic Trade and Cost of Living (KPDN) has seized 3,545 pieces of gold worth RM82,725 for failing to meet advertised purity standards.
The seizure was made during ‘Ops Tulen’ at a business premises in the Kuchai Lama Business Centre under the Trade Descriptions Act 2011.
Enforcement officers acted on suspicions the premises was selling substandard gold products marketed via social media.
Tests using X-Ray Fluorescence equipment revealed the actual gold content was far lower than the stamped AU 999.9 purity.
“The actual gold content was much lower than the stamped purity of AU 999.9, with an average reading of around 77%,” KPDN said in a statement.
Further inspection identified the premises as a supplier to a retailer selling identical products online.
Tests on the seized items showed gold content varied between 80% and 98% for each 0.01-gram piece.
The premises is suspected of an offence under Section 5(1)(a) of the Trade Descriptions Act for making false trade descriptions.
Several pieces of equipment and documents were also seized to assist the investigation.
KPDN warned legal action will be taken against any party making false claims about goods under Section 5(1)(c) of the Act.
For individuals, a first offence carries a fine of up to RM250,000, a maximum three-year jail term, or both.
A second or subsequent offence for individuals can result in a RM500,000 fine, up to five years’ imprisonment, or both.
Companies face a fine of up to RM500,000 for a first offence and up to RM1 million for subsequent offences.
The ministry stressed its commitment to intensifying enforcement against misleading business practices, especially in precious metals.
The public can submit complaints via WhatsApp at 019-848 8000, KPDN’s e-Complaint portal, the Call Centre at 1-800-886-800, or the Ez ADU application.
